VAT Return for negative period

HMRC systems are awesome

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We had a client company that was dissolved last August. Meanwhile, HMRC were still issuing reminders for VAT Returns. I tried to resolve with the helpline, but honestly the staff proved to be more incompetent than I remembered.

Plan 2, I de-registered the company for VAT on the day immediately following the last submitted Return, being 1 May 2019.

Checked today, and HMRC want a final for the period commencing on 1 November 2019 and ending on 1 May 2019. The helpline didn't seem to understand that you can't have an end date earlier than a start date.

Awesome work on their systems, HMRC.

Replies (10)

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By Maslins
20th Feb 2020 11:38

We unfortunately have issues a bit like this regularly on the MVL Online side.

It seems HMRC will _always_ want a final VAT return. This applies even if you nicely coincide de-registration with an existing quarterly return, or even if you date de-registration earlier than the end of a submitted VAT quarter. Regularly have final VAT returns for a 1 day period.

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ALISK
By atleastisoundknowledgable...
20th Feb 2020 11:41

I’ve had a final vat return that was dated something like 1/9 - 1/9 (31/08 return done), but better than that last year I submitted the 06.19 return, then later dereg on 30/6 - I was asked to do a return for 30/6-30/6. When I raised the fact this this period had been covered, I was advised to do a nil return “to trick the computer”! Marvellous.

Has to be said, nowhere near as good as yours SteLacca. What are the changes they eventually end up trying to take a dissolved company to court for non submission of a negative period return?! Heard it here first ...

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Replying to atleastisoundknowledgable...:
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By Truthsayer
20th Feb 2020 14:34

Perhaps there would be a negative assessment, with negative penalties, and thus a refund!

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Replying to Truthsayer:
ALISK
By atleastisoundknowledgable...
20th Feb 2020 17:08

Truthsayer wrote:

Perhaps there would be a negative assessment, with negative penalties, and thus a refund!

You never know.

But that would mean a HMRC victory, so the client would end up paying legal fees on both sides!

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Stepurhan
By stepurhan
20th Feb 2020 11:42

Just enter it as a nil return. HMRC's systems cannot cope with a termination date earlier than the last return submitted.

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Replying to stepurhan:
By SteveHa
20th Feb 2020 11:46

It wasn't earlier than the last Return submitted. The last Return was Q/E 30/4/19, and I de-registered 1/5/19.

I have submitted as NIL, but the negative period still baffles me.

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Replying to stepurhan:
RLI
By lionofludesch
20th Feb 2020 12:26

stepurhan wrote:

Just enter it as a nil return. HMRC's systems cannot cope with a termination date earlier than the last return submitted.

Used to be so - but not any more.

I first noticed this backward period thing a few years ago. I mentioned it on this forum.

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By Truthsayer
20th Feb 2020 14:38

I've come across this situation before with negative periods. If you just submit a £Nil return to humour the system it will be fine.

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paddle steamer
By DJKL
20th Feb 2020 23:37

If the company is dissolved how can any return be submitted?

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Replying to DJKL:
By SteveHa
21st Feb 2020 08:08

A point I made repeatedly to the telephone ill-advisor, but he didn't seem to get it.

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