NFR - VAT - HM Revenue & Customs Help

[Alfayedslovechild]

About 5 years ago, I had this idea of starting up my own business. I was talking to potential "clients" of which one of them said "If we starting doing business together, you need to be VAT registered".

Thinking no more about it, and trying be prepared, I applied to be VAT registered online as a "sole trader", filled in a few details, job done, didn't think any more about it.

Anyway, starting up my own business never materialized, it was a flash in the pan and all my hard work came to nothing, my clients were all talk and that was that.

Since then, the VAT people have been following me around like a bad smell asking me to submit my VAT returns etc. I keep telling them that nothing ever materialised, I never started up my business, or did anything that warranted paying VAT.

I've now just been traced to my new address and as usual, I get a letter saying "Your records show that the address on the VAT Register is different" , "you are required by law to notify us of changes", "Please fill in the proforma overleaf"

I've lost count in regards to the numerous amount of conversations that I've had with HM Revenue & Customs on the phone. I think I've told them my story 100 times over, but it doesn't make any difference. I think there is some lengthy process that I need to go through to get this sorted.

My main fear is that I'm going to get a big penalty, or they will think I've been trading for the last 4-5 years and in turn I get a massive bill. That isn't the case, as I never started up my business.

Any help would be appreciated as I finally need to get this sorted.   

[fulhamben]

Iron Maiden - Run To The Hills
only the maiden can help you now

[Max Headroom]

go and speak to an accountant. Don't try to work it out yourself. They will know exactly what you need to do.

[bulgariawhite]

A trip to the Citizens Advice Bureauu could help. Or probably for a consultation fee a trip to a reputable accountant. You should have waited until the business was trading before applying as you would not have met the thrshold to register/ Hoever you are obliged to de register otherwise a penalty may be enforced.
They donot accept ignorance or naivity as an excuse. GOOD luck

[Me-ate-Live, innit??]

You really do not need to go to anyone and incur more charges
You need to fill in VAT7 form

vhttp://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=64dcehSs-Cc&formId=999

Write a letter explaining (in plain  English) give THEM  copies of activity P60 would be good  or  ......what ever to show what you were doing at that time
Send it by next day delivery  NOT RECORDED AS RECORDED CAN TAKE UP TO 15 DAYS
The sooner you do this the sooner they get off your case
Ask for confirmation that they have removed you from their records
( enclose a SAE for this )

Do not be trixi with the VAT MAN ................... he will crucify you and then toast you
Phone calls are useless .............a bit like p........................ wind and whistle

PS PRETEND YOU A THE VAT PERSON ....WHAT WOULD YOU ACCEPT  to close the file???

PPS .........I do not mean you should bribe them 064.gif  it all about a WRITTEN account backed up with supporting documents

[BarryP]

I have never had dealings with the HM but my background is in tax and have gone through the process of closing tax numbers in multiple taxing juisdictions and the process is usually similar for most jurisdictions. In general, the only thing you are likely to accomplish on the phone is to get any forms you need to close the tax number to your current address. Beyond asking  for forms on thee phone you are probably wasting your time.

What forms are you likely to need?

1 - The change of address form.
2 - Any unfiled returns. You will probably have to file zero activity returns for any open periods.
3 -The forms to close the account.

If you get and file all of their paperwork there is usually no penalty charged. This type of thing happens more than people think but you really need to get the paperwork filed even  if you need to get help. I can't agree more with finding an accountant or attorney to help if you aren't comfortable with dealing with forms or bureaucrats.

[Jem]

KCat is correct. Fill in form VAT7. when you get to question 6 tick box i other. then go to the bottom of the form and give your explanation. Top tip, be respectful and ask for their help. It goes against the grain but these people. can make your life hell if you upset them. Good luck.

[ffc73]

Personally I find the people at HMRC helpful to deal with over the phone and in person but I would not recommend just sending paperwork to them without keeping copies and sending it by 'signed for'.  They have a huge backlog of paperwork and I have had stuff go missing

Specifically about VAT de-registration see http://www.hmrc.gov.uk/vat/managing/change/cancel.htm

[Me-ate-Live, innit??]

FFC75  'Next Day Delivery' costs more than Recorded Delivery but the next day delivery is guaranteed to get  there next day 
Recorded can take 15 days ............................ they are both signed for.

As for keeping copies of documents ...................... anything to Financial Institutions and Government bodies,  it is a given  that copies should be retained.

I have not dealt with the VAT people for a number of years but as JEM  said they can make your life hell, I cannot believe they have changed that much.

[The Old Count]

I suspect that you are required to provide written confermation of no longer requiring registration.

Pick up the phone and speak to them.  They're usually quite helpful.