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Builder not filing VAT Returns

Paying HMRC estimate

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I have a client builder limited company who has not filed the last three VAT returns and the fourth one is due shortly

They are just paying the HMRC VAT estimates based on the advice taken by his builder mates who do the same thing. Hence I guess why HMRC wanted to introduce the reverse charge for the construction iindustry and shame it was delayed by one year.

There is 20K VAT due by the end of the fourth VAT return.

Should a SAR be filed ?  Probably will end up resigning anyway.

Replies (8)

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By 356B
26th Sep 2019 11:14


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By Accountant A
26th Sep 2019 11:41

Put it this way, do you think he is paying more than the VAT due?

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Replying to Accountant A:
By JimLittle
26th Sep 2019 13:53

No he still owes HMRC 20K after deducting payments for the estimates.

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By Justin Bryant
26th Sep 2019 13:00

I'm pretty sure there was a case on this sort of thing where the tribunal found the taxpayer not to be dishonest (assuming an honest best estimate was made).

Possibly it was this one:

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Replying to Justin Bryant:
By JimLittle
26th Sep 2019 13:58

Thanks but he is paying based on HMRC assessments

I don't know why HMRC just send this vague assessments out in the first place. Surely they should take action against those that do not submit VAT return especially in the construction trade which they know is a risk area

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By Les Howard
26th Sep 2019 13:29

There is a penalty for paying such assessments where they are less than the correct VAT liability. Do warn the (ex-)client.

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Replying to leshoward:
By JimLittle
26th Sep 2019 14:47

Yes they are aware and not bothered but potential tax evasions issue is more of a concern

Difficult one as they are still making partial payment for VAT based on HMRC assessments instead of not paying at all.

Thanks (1)
By lionofludesch
29th Sep 2019 11:37

Jim - the quality of your client base constantly amazes me.

Thanks (3)
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