Reeling in the VAT

In a case concerning a company’s belated VAT registration the appellant appealed against HMRC’s decision of registration as well as an assessment for unpaid VAT for the value of £268 084.98.

The appellant whose restaurant had been open since December 1998 said he failed to register for VAT due to ignorance of the tax system and inaccurate information from his accountant.

It was not until February 2008 that HMRC questioned the appellant’s VAT status when the case was referred to the closer working team for the appropriate checks to be carried out.

Subsequently HMRC discovered the appellant’s unregistered VAT status and then directed an enquiry to the indirect tax risk team.

A number of letters were sent to the appellant with the intention of determining the relevant registration date and so on; HMRC received no response.

The appellant argued that the...