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VAT TOGC

Is there a time limit for applying for a Transfer of Going Concern for VAT?

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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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RLI
By lionofludesch
05th Jul 2018 17:45

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.

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Replying to lionofludesch:
Bee
By May bee
06th Jul 2018 09:48

The first point is covered further below.

The second point may still be worthwhile...

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Portia profile image
By Portia Nina Levin
05th Jul 2018 17:47

You don't apply! It's either a TOGC or it isn't.

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Replying to Portia Nina Levin:
RLI
By lionofludesch
05th Jul 2018 17:54

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.

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Replying to lionofludesch:
Portia profile image
By Portia Nina Levin
05th Jul 2018 18:02

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.

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Replying to Portia Nina Levin:
RLI
By lionofludesch
05th Jul 2018 18:15

Yup.

Agree.

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avatar
By daviddaniels
06th Jul 2018 10:07

No returns have been submitted since the change, but the quarter to 30th June is due soon.

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Replying to daviddaniels:
Portia profile image
By Portia Nina Levin
06th Jul 2018 10:32

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.

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Replying to daviddaniels:
RLI
By lionofludesch
06th Jul 2018 10:58

I would advise you to consider submitting forms VAT1, VAT2 and VAT68 pronto.

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Replying to lionofludesch:
avatar
By Taxbreak
09th Jul 2018 11:40

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.

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chips_at_mattersey
By Les Howard
06th Jul 2018 16:31

I have never seen a penalty issued for a failure to notify a change of status.

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