VAT - Client forgot to De-Register!

T.C.

Just wondering how to approach this one.
My client put in his last VAT Return at the end of January, then started work for a company full-time, left his wife, moved house etc. He did not de-register for VAT.
They have caught up with him now and are asking for payments because he has not submitted the April and July Returns. Obviously there is no trading income and no VAT due (apart from any balancing figure for stock etc), but would you write to them and explain it all, or phone them first and then put in a VAT7? Opinions appreciated.

Monsoon

Put in the VAT7 now, and also write to them to explain and apologise.

If the last return that went in covered everything, then there should be nothing more to be done.

I don't think there would be any penalties but I'm not sure offhand.

Definitely get the VAT7 in now.

T.C.

Thanks for that. I will do. I will send a covering letter with it. Thanks.

Monsoon

No probs. Don't forget the £1000 rule on closing assets/ stock!

T.C.

Oh yes, thanks for the reminder.

deanshepherd

I would probably file nil returns as well - just to stop the alarm bells ringing at HMRC Debt Management Unit.

T.C.

That is a bit more difficult. I have never done his VAT - he always done his own. He has not got the VAT Returns themselves because he left his wife etc and did not re-direct his post!

JodieR

Just get him to phone up and find out his date of registration and the amount on the last return and then you can file the nil returns online.

T.C.

I would love to, but he is not that organised. Paperwork at ex-wife's house etc etc.