VAT registration error

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Monsoon
Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
I've just spoken to someone who registered voluntarily for VAT last year.... And put the chosen date of registration as 2007! therefore all sales from then now need VAT accounting for! I believe he completed the registration without taking advice.

Will HMRC accept an amendment of the effective date of registration to something more sensible, or is this person stuck? I've never come across a scenario like this before so am not sure how best to proceed.

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  • BCASL
    BCASL Registered Posts: 64 Regular contributor ⭐
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    We had a similar situation a couple of years ago. As no returns had been submitted, HMRC allowed us to amend the year. Not sure if this is still the case?
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Thanks; if that is still the case, that may be very helpful indeed. Do you recall if there was any other procedure other than writing to the Grimsby EDR and explaining the error and requesting an EDR amendment?
  • BCASL
    BCASL Registered Posts: 64 Regular contributor ⭐
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    I phoned and then wrote to EDR Amendment Section, Wolverhampton explaining the mistake and requested them to amend their records and issue a new Registration Certificate.

    I suppose the only difference now is that when this happened to us, it was still paper returns, so we just crossed out the date on the return and amended it, not sure what will happen now with electronic filing?

    Good luck, hope it works out for you!
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Thanks. No returns have been submitted so fingers crossed!
  • BCASL
    BCASL Registered Posts: 64 Regular contributor ⭐
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    Good luck - keep positive!

    A little bit spooky, but our problem related to 2007 as well!!

    Let us know how it goes
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    Just had a refusal. We are writing again, as their decision will make the company insolvent and HMRC will never see the money as they just can't do it. It seems crazy that one little error can have such a big impact; obviously the client is very distressed.

    Paragraphs 9 & 10 of Schedule 1 to the VAT act 1994 states “they shall, if he so requests, register him with effect from the day on which the request is made or from such earlier date as may be agreed between them and him.” I read this to mean you have the choice to make the EDR either 17th September 2010 (the date the application was made) or the earlier date specified on the registration form. I read this as a free choice and I do not see any provision for specifically not amending the EDR as requested.

    I really do hope HMRC exercise their powers of discretion and amend...
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