Hi, I am a VAT Consultant, working mainly with charities. I am based in Cambridgeshire
I have over 20 years experience in VAT, and am currently also a part-time member of the Tax Tribunals.
If you are still registered, ask them how you can be deregistered.
What would I do?
Would I ask HMRC to exercise their discretion?
Would I claim it on the basis that they should exercise their discretion?
I would claim the input tax, and make sure I had obtained as much evidence as I could, and cross-reference HMRC guidance on the point.
I would not contact HMRC to seek their view.
But I fully understand that others would take a more cautious view, and not claim without contacting HMRC first.
Yes, if the value of the supply exceeds £250 a proper VAT invoice is required. You should contact the seller, and request one. If they fail to do so, then make a note of your call, and go for alternative evidence, as per my link above.
This is a link to HMRC guidance on the point: https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit31200
If the value of the supply exceeds £250 a till receipt will not suffice. You need a proper VAT invoice.
Only if you are unable to obtain one do you need to revert to the alternative evidence route.
Fair comment. But you would have a difficult job convincing HMRC of the difference.
I share others' concerns over the VAT issue. Even if your intentions are product-driven, it may look to HMRC like artificial separation, if one is below the threshold.
The services you intend to provide a too similar, and HMRC will have every right to aggregate your turnover, and treat you as a single legal entity.
I have never seen a penalty issued for a failure to notify a change of status.
If you have some spare time, this Upper Tier decision addressed similar issues: https://www.gov.uk/tax-and-chancery-tribunal-decisions/i-c-wholesale-lim...