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Option to tax

HMRC response to Option to Tax application

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My client wrote to HMRC with an Option to Tax Application in January, 2022.  As at 25th May, they have not received any confirmation from HMRC.They have queried by email the status of the application and received an automated response only, indicating only that the application will be dealt with in strict date order from receipt.

They started receiving rent from a tenant in February, adding vat to the amount due, as per HMRC guidelines (i.e. apply vat on the assumption the request will be accepted).My client has accepted an offer to sell the property. The buyer's solicitors are wanting confirmation that HMRC have received the request and have specifically acknowledged to that effect.My client has attempted to contact HMRC by telephone, but the telephone numbers specified on the application form are no longer in service and the alternative 0300 200 3700 number always ends with the call lasting several minutes and being terminated before anyone has been spoken to. 

Can anyone suggest a way forward?


Replies (4)

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By DKB-Sheffield
25th May 2022 17:13

I had this issue a few months ago.

As your client has agreed a sale, you should email OTT and mark it as 'URGENT Sale Agreed'.

You will need to send a communication from the buyer's solicitor!

When your client emailed the OTT Unit, they would have received an automated response telling them exactly how to address the urgent matter (i.e. what to provide).

Plesse ensure you state categorically that this is in relation to the application dated 25 Jan or they will likely start from scratch. I had this, and wrote to complain. I received a phone call (!!!) the following day apologising. OTT was issued within a week.

If your client doesn't have the original automated response, PM me and I'll send you the info from my client's auto response!

Thanks (3)
By creamdelacream
26th May 2022 09:25

Sounds like a typical dealing with HMRC to me

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By Dib
26th May 2022 13:04

Formal complaint time!

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By JacquiMBurns
26th May 2022 13:51

Just follow the advice on the automated reply & reply to it marking the reply URGENT in the subject line with the company address & VAT Reg number if they have issued that already as they usually do (although had one lately which said they wont issue a VAT number until the OTT is sorted). Attach a copy of the relevant letter from the solicitor of the other side & email it back to them. I have, on occasion, had a reply with OTT by return. OK I may have nagged a bit!

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