I have realised that a new client's VAT registration was never transferred from her sole trade business to her ltd co on incorporation 4 years ago. What would be the best way to deal with this? I intend to send a VAT1 and VAT68 with a covering letter to HMRC stating that all returns are up to date and there is no loss to the revenue as far as I know.
Has anyone had a similar experience and what penalties if any should the client expect? I am surprised that this has not been flagged up by HMRC for such a long period!
Many thanks in advance for your comments.