vat help

[hopeless]

I have a small business and basically have not filed a vat return for three years and they have now rang me wanting the money.My turnover is not at the vat threshold and the lady said i should de-register from 06 but not sure what to do as i did charge vat from this time. I know i will have it to pay but i cannot pay all at once does anyone know what sort of timescale they will give me? Should i de-register.

 

[GillespieBS]

I really think you should contact a local accountant in the morning. Most give you an initial consultation for free and your query sounds like you will benefit from doing this.

Your query begs more questions than answers from the information provided.

 

[hopeless]

i know that and am in a mess with books will contact someone Thanks

 

[Logistika]

so you have charged vat for the pat three years and not remitted it to HMRC.

Presumably you registered for vat for oen of 3 reasons:
1. your turnover at the time was above the threshold
2. you were under the threshold but expected it to go above it within a reasonable time
3. you were well under the threshold, and expected HMRC to be an additional source of finance.

Your first task before you approach an accountant is to work out where you stand Vat ways.

Do you owe them, or do they owe you?

Its been three years and hence above the time limits for not submitting either a Corp Tax Return or a Self Asessment Return (both requiring accounts)

It vexes the question, as to why. Presumably you listened to bar room advisors at outset, but now require to pay for advice.

 

[hopeless]

so do i de register or not

 

[Logistika]

if you deregister you are stil liable for any excess of vat chargeable on your turnover (less qualifying inputs).

On the dereg form you effectively enter into a contract witbh HMRC that you are still liable for debts incurred to them during your period of registration.

It is up to HMRC to decide whether or not they consider you a risk of unpaid tax.

But yes if tunrover is below threshoolds, then yes, deregister, and see if they chase you.

If they do, go speak to your accountant, and for gods sake, go get your other records up to date.

 

[hopeless]

ok will do that now thanks

 

[Zeno]

You cannot back date a de-registration so this will not help you with your current VAT liability.

You will have to work out what you owe then agree a payment plan with HMRC. Not sure how you have managed to go three years without returns though - did you pay assements?

 

[hopeless]

ok will seek an accountant out and get onto it then i will know where i stand i do not know how they did not contact me for it but they did not. will bite the bullet now and get it sorted something i should have done before!

 

[Zeno]

ok will seek an accountant out and get onto it then i will know where i stand i do not know how they did not contact me for it but they did not. will bite the bullet now and get it sorted something i should have done before!

One of the VAT experts may be along to keep me right here but are you saying that for the three year period you received nothing from HMRC?

If so then you may be able to mitigate some of the penalties.

 

[hopeless]

i did get something off them from what i remember but am going to ask for all my backdated forms then fill them in (or get an accountant to) dont earn a fortune though so will depend on what it costs. Is there something on here that tells you what you can and cant claim for?

 

[Zeno]

i did get something off them from what i remember but am going to ask for all my backdated forms then fill them in (or get an accountant to) dont earn a fortune though so will depend on what it costs. Is there something on here that tells you what you can and cant claim for?

Assuming standard procedures after three years of non-submission of VAT returns you should have received:-

1. A copy of your VAT registration certificate
2. 12 VAT returns (green forms)
3. 12 assements for unpaid tax (yellow letters)
4. 12 penalty notices (yellow letters)

If you did not respond to any of this then I am reasonably sure you would have heard from them much sooner than this.

Did you backdate your original registration at some point?

 

[Homshaw]

I've just done a job for a client who should have registered in 2002 with the capital items I had his books going back to 1999.

The lady dealing with it for the HMRC suggested he backdated his de-registration. I am sure she was only trying to help but they do make misleading statements

Had a guy on a self assessment helpline the other day who was absolutely insistant that business losses could only be carried forward. He almost had me doubting my sanity

 

[hopeless]

I've just done a job for a client who should have registered in 2002 with the capital items I had his books going back to 1999.

The lady dealing with it for the HMRC suggested he backdated his de-registration. I am sure she was only trying to help but they do make misleading statements

Had a guy on a self assessment helpline the other day who was absolutely insistant that business losses could only be carried forward. He almost had me doubting my sanity[/quote

what does this mean for me sorry to sound so thick

 

[Zeno]

I've just done a job for a client who should have registered in 2002 with the capital items I had his books going back to 1999.

The lady dealing with it for the HMRC suggested he backdated his de-registration. I am sure she was only trying to help but they do make misleading statements

Had a guy on a self assessment helpline the other day who was absolutely insistant that business losses could only be carried forward. He almost had me doubting my sanity[/quote

what does this mean for me sorry to sound so thick

That you cannot rely on anything that HMRC tells you over the phone.

 

[David Griffiths]

Had a guy on a self assessment helpline the other day who was absolutely insistant that business losses could only be carried forward. He almost had me doubting my sanity

You should be doubting your sanity! Expecting an accurate reply from an HMRC helpline is the first sign.

 

[Homshaw]

You should be doubting your sanity! Expecting an accurate reply from an HMRC helpline is the first sign.

Your probably correct.

I was just asking for a rebate that I had requested for a client and hadn't materialised. Having people on helpdesks who give such misleading advice yet make such a difference to people is unacceptable. When I spoke to a supervisor and complained he said anyone can make a mistake. It wasn't a mistake the "helpdesk" worker simply didn't know any better

The only point I was making to Hopeless is that information given by HMRC can be misleading and there is no way you will be allowed to backdate a de-registration in spite of what you have been told by HMRC