VAT "debt"

[millercc]

hiya. there'll be a few posts from me on here about varying different things... trying to get my finances back in order, so bear with me :-)

I have recently been contacted by HMRC through the post with reference to a VAT account that was open in my name from when i was trading as an IT company, telling me that i have outstanding debt with them of just under £3,500 as i had not submitted returns to them since 2006.

Having submitted a vat account closure form in april 2006, and having had no reply i assumed (incorrectly, it appears) that this had been done.

in 2008 i recieved further contact from them and again submitted a vat account closure form

now, in 2011 i recieve a further letter, telling me i need to pay £3,500 or they will issue a summons to court with a view to enforcing the debt.

I have now submitted a 5th form to them over the time (i did a couple of others in between 2006 and 2008) and submitted zero returns for all quarters as reqested and filed this by recorded delivery. surprise surprise, this one was recieved!

now apparently, i owe them "only" the quarterly late payment fees - even though there was no payment to make as the business ceased trading on the 5th april 2006. that means i'm left with "only" £150 to pay plus interest on those fees of a further £50

am i right in thinking this cannot be done?

thanks in advance :-)

[WendyB]

Re: VAT "debt"

Not exactly. If you are registered for VAT and fail to submit a VAT return, then HMRC will assess the amount they think you should have paid for each quarter. This amount will stand until you submit the correct return, which in this case was NIL returns for the assessed periods.
Whether or not you owe the 150 will depend on when your deregistration had been deemed effective from. If it's from 2006 and backdated, then no returns would be due, therefore they couldn't be late. If however they are treating your de-registration from now ( which it seems they are otherwise you wouldn't have been asked to submit nil returns) then it will stand, because, in effect, all those returns are late, whether or not they are nil.

[millercc]

Re: VAT "debt"

had confirmation back from the VAT inspectors today... outstanding balance:

NIL!

they've written off the surcharges for late filing, on the basis that i couldn't have filed on time!