We have a new client who failed to register for VAT at the time he reached the registration threshold.
He has £36k VAT to pay. His proposal is as follows:
1) Pay all the future quarterly VAT in time
2) £36k payment spread over 4 years.
HMRC, as I expected, said that 2 above is unacceptable. They want £36k in one year. His cash flow does not allow for £36k payment over a year.
How can I get HMRC to accept 2 above? What evidence do we need to provide HMRC? Who in HMRC has the clout to make this decision?