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?
Thanks!
Replies (3)
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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.