VAT registration cancellation

Our client (a Holding Company) faced VAT registration cancellation from HMRC as from the initial date of VAT registration because HMRC were “not satisfied that the client was making supplies which fell within the scope of UK VAT”.

If HMRC had been correct this would have resulted in a loss of over £140,000 VAT historically recovered by our client as Input Tax and an ongoing cost in excess of £50,000 a year. Unsurprisingly our client did not want its VAT registration cancelled. Care needed to be taken because HMRC can cancel a VAT registration in certain circumstances.

We appealed the matter to the Tax Tribunal and instructed Counsel. HMRC lodged a statement of case relying upon the VAT Tribunal decision, amongst others, in the case of African Consolidated Resources v HMRC [2014] UKFTT 580 available at https://www.bailii.org/uk/cases/UKFTT/TC/2014/TC03705.html

VAT registration cancellation successfully disputed by our team

One of our expert VAT specialists drafted a witness statement on behalf of a Director of our client which was sent to HMRC and the Tribunal. HMRC withdrew from the VAT appeal some 2 weeks before the Tribunal hearing was due to take place.

https://www.solvevat.co.uk/vat-registration-cancellation/

VAT registration cancelled

A company having its VAT registration cancelled has been described as HMRC having “adopted the nuclear option” as per paragraph 18 in the case of Ingenious Construction which can be found at https://www.bailii.org/cgi-bin/format.cgi?doc=/ew/cases/EWHC/Admin/2020/2255

Sometimes a business can have a VAT registration cancelled on the grounds that its VAT registration had been used principally or solely for the facilitation of VAT fraud and that the business knew this or, alternatively, had the means of knowing that was the case.

Contact

If HMRC are seeking to cancel a valid VAT registration call us on 0161 883 2120 to discuss the matter without obliation.

HMRC

HMRC can cancel your VAT registration. The two main reasons are when HMRC conclude after a VAT investigation that a VAT registered business is either no longer making taxable supplies or that HMRC believes that the company has been registered with the principal aim of the VAT registration is to facilitate a VAT fraud.

Meet The Team

PeterSmallwood

Peter has assisted a variety of clients including overseas businesses, large multi-national businesses, family businesses, partnerships and sole proprietors. Peter has represented clients at VAT ADR meetings and at the First-Tier Tax Tribunal. Initial negotiations with HMRC can be crucial and as a VAT specialist Peter has been able to make representations to HMRC that have resulted in a number of clients to successfully resolve matters without the need of further action. Peter has been instructed by a number of firms of Solicitor’s to provide expert witness reports in relation to VAT matters.

Experience

Peter has over 25 years’ experience as a leading VAT specialist working as a VAT accountant in the accountancy profession including being a VAT Director at Deloittes. Prior to working as a VAT accountant within the profession he worked as a Senior VAT Officer at what is now HM Revenue & Customs (HMRC). Indeed he remembers the days prior to HMRC when he worked at HM Customs & Excise (HMC&E) and before specialising in VAT his work experience included Excise Duty and Customs Duty matters.

RachelDavies

Rachel Davies began her working life in the legal profession. When appropriate Rachel will instruct Counsel on behalf of clients for some of the more complex appeals on which we are instructed. Some appeals where Counsel has been instructed by Rachel have resulted in HMRC conceding the matter only a matter of days before a hearing was due to take place.

She moved on from the legal profession and over 25 years ago began working with the VAT group at Deloitte. Rachel was instrumental in setting up Solve VAT in 2002 and almost the first matter she worked on was what ultimately turned out to be a successful appeal on behalf of a client to the High Court from what was then the VAT and Duties Tribunal.