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Dilemma with filing deadline approaching

Some will remember the thread, below. In the absence of a response from HMRC, how would you proceed?

Didn't find your answer?

Some will remember this thread: https://www.accountingweb.co.uk/any-answers/vat-registration-and-excepti...

The accounts filing deadline in approaching with no decision or feedback from HMRC. What would you do?

a) Prepare and file on the basis that exception will be granted

b) Prepare and file on the basis that it will NOT be granted, but assume the VAT can be recovered from the client(s).

c) Prepare and file on the basis that it will not be granted and the VAT CAN NOT be recovered from the client(s). Recovery is possible but uncertain and untested.

d) Refrain from final prep and filing until the outcome is clarified.

To compound the issue, I have a lender chasing the accounts for mortgage purposes.

Many thanks.

Replies (8)

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By John R
21st Aug 2018 17:01

It is, of course, the directors, rather than yourself that need to make this decision but, no doubt, they will be guided by you. I would suggest option (a) as, based on your earlier question it seems more likely than not that exception will be granted.

Thanks (1)
Replying to John R:
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By andy.partridge
21st Aug 2018 17:21

I was being optimistic about the exception being granted, but that is the only way to be, I think, in life.

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By lesley.barnes
21st Aug 2018 17:08

If I had to opt because of pressure from the client I would go for C if only to be prudent. Based on a case like yours that I had recently my request for an exception was declined. The reason was because I applied after the event using hindsight and the request was not made before the event.
The client's main customer was VAT registered but they refused to pay the VAT leaving the client about £6k out of pocket.

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Replying to lesley.barnes:
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By andy.partridge
21st Aug 2018 17:23

Yes, I am aware of the hindsight factor too and have attempted to make a claim that suggests this is not involved.

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RLI
By lionofludesch
21st Aug 2018 17:08

There's a lot of uncertainty there. I'd probably shorten the AP , buy myself an extra three months and press HMRC for a decision.

If that's not possible, I'd go for the worst case scenario

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Replying to lionofludesch:
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By andy.partridge
21st Aug 2018 17:20

Mindful of prudence - it would appeal on the basis of lower CT, but could impact negatively on the mortgage application.

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By Marion Hayes
21st Aug 2018 21:18

Look at Neils latest article today under Liable not liable concession

Thanks (1)
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By Watson Associates
22nd Aug 2018 11:22

We had a similar case recently (1 large contract not to be repeated) and exception was granted. The delay was about 15 months. Given the evidence I would go (a). The Accounts can be amended later if incorrect I presume.

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