Is there a time limit for applying for a Transfer of Going Concern for VAT? A client has just informed me that he has transfered from sole trader to a partnership as of 1st April, but hasn't applied for TOGC.
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In my limited experience, it's glossed over where there's a change of status. None of my clients have ever had a penalty for this.
Nevertheless, a sharp blow to the back of the head should keep the client alert in future.
Mmmmmm, well, you do in a way.
The new partnership has to apply for registration, so technically, it could be a late registration.
But, you're right, you don't apply for some sort of approval to it being a TOGC.
So, the thing that hasn't been applied for, is registration of the partnership.
The question then really is whether or not any VAT returns have been submitted under the soletrader registration since the change.
No. The soletrader's return to the date of the change is overdue. We don't know yet know when the partnership's first VAT return is due.
I would suggest exercising extreme caution before automatically completing and submitting a VAT 68... If the VAT number is transferred (which is what happens when the VAT 68 route is used) then so is the transferor's "VAT history", which mean's the transferee will be liable for any VAT previously underdeclared by the transferor (whether or not identified at the time of transfer); and if the transferor is under the default surcharge regime then that history is also picked up... A little due diligence should be undertaken, especially where there is a partnership created of the previous sole trader owner plus A N Other, which is taking over the business of the sole trader. Otherwise A N Other may find himself/herself taking on more than was first thought.