Share this content
8

VAT Investigation

Didn't find your answer?

I wonder if anyone can help me. We had a vat investigation for a client of ours and VAt officer raised an assessment specifying he will not be charging penalties in this instance. The case was referred for Statutory review.  Vat officers decision was upheld.  Now I receive a letter saying penalties will be charged.  VAT statement of account (VAT 667) shows penalties as nil.  Can Vat officer now charge penalties in this case.

Thanks 

 

 

Replies (8)

Please login or register to join the discussion.

avatar
By Roland195
06th Dec 2019 12:14

Do you mean the penalties were suspended?

Thanks (0)
Replying to Roland195:
avatar
By fehawkes
06th Dec 2019 13:23

Hi Roland and Les,
Yes the penalties were suspended.
It says in the letter:
'On this occasion we are considering suspending the penalty.'

Thanks (0)
Replying to fehawkes:
avatar
By Roland195
06th Dec 2019 16:53

I think as Whitevanman suggests, you are misunderstanding the correspondence sent, no doubt caused by the nonsensical boilerplate they insist on including in every communication. In the case of suspended penalties, they are effectively charged but held over then removed so long as your client meets the conditions. Bound over to keep the peace basically.

Thanks (0)
chips_at_mattersey
By Les Howard
06th Dec 2019 12:37

If the Officer clearly indicated no penalties would be charged, then HMRC should honour that. But was it in writing or merely verbal?

Thanks (0)
Replying to leshoward:
avatar
By fehawkes
06th Dec 2019 13:24

Hi Les,
Yes it is in writing.
Many thanks.

Thanks (0)
avatar
By whitevanman
06th Dec 2019 13:45

There is a long-standing principle that HMRC is not bound by the actions of any officer. It would however, be extremely unusual for anyone to go back on a statement of the type you refer to, whether verbal or written.
That said, I wonder if you are mis-reading something. A lot of what HMRC sends out is not actually written by the officer dealing with the case but is a generic letter or form, designed to cover all eventualities. So the letter you have may refer to penalties but, as you seem to suggest, none has actually been charged.
I suggest the simplest solution, if you are still unsure, is to phone the officer you dealt with and ask for confirmation / clarification.

Thanks (0)
avatar
By Wanderer
06th Dec 2019 17:04

If penalties are to be held over there's not much to be gained from taking this any further, just ensure accuracy as best as possible, for the hold over period. Issue then goes away.

Thanks (0)
avatar
By Jdopus
09th Dec 2019 11:48

My best guess - If the penalties are still showing as nil it's all fine. When HMRC suspend or choose not to issue penalties they still send out a letter telling you that they're charging you a penalty of £0. Don't ask me why.

If a second letter arrives showing actual penalties, chase them again and appeal against them. I've had to do it once before and HMRC removed the penalties after I showed evidence that a suspension had been agreed with the on site officer.

Thanks (0)
Share this content

Related posts