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Partnership registered for VAT as sole trader

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I have taken on a new partnership client and noticed that they are not registered for VAT as a partnership but instead the registration is as a sole trader in the name of one of the three partners.

Firstly, what are the implications of this error, if any?

Secondly, if I use the VAT 484 form to correct this is there an obvious place on the form for the change or should I approach this another way?


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By lionofludesch
20th Jun 2019 18:02

Well, the "sole trader" is the bloke who'll cop the fines and calls from Debt Management. I'm guessing he was the original owner, was he ?

You need to submit forms VAT 7, VAT 1, VAT 2 and probably VAT 68 given the circumstances. VAT 484 is useless.

As no tax has been lost, there should be no penalty, though that shouldn't be an excuse for not correcting the situation promptly.

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Replying to lionofludesch:
By bettybobbymeggie
21st Jun 2019 10:22

Thanks for your reply. I guess he must have been the original owner but did not update his registration when the partnership was formed c.30 years ago. What a faff!

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Replying to bettybobbymeggie:
By lionofludesch
21st Jun 2019 12:01

It's only the same faff as he should have done 30 years ago.

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