Registration was on time

The taxpayer company claimed that it submitted a VAT registration application on 8 April 2008.

It was a voluntary application because the business intended to make taxable supplies in the future. But no certificate was issued despite several calls to the VAT office.

A year later the taxpayer submitted a second application explaining the business had exceeded the registration limits in May 2008 and requesting registration with effect from April 2008.

HMRC acknowledged the application in May 2009 and issued a late notification penalty. The department claimed to have no knowledge of the original application or any record of the subsequent phone calls.

The taxpayer appealed.

The First-tier Tribunal noted the taxpayer’s advisers had received a letter from HMRC relating to the delay in registering another of the adviser’s clients.

The letter admitted the...