Transferring VAT registration

The taxpayer ran a takeaway food business as a sole trader until 2005 when he set up a company of which he was sole director to take over the enterprise.

Following a visit to the premises HMRC concluded takings had been under-declared and determined the taxpayer should have been VAT-registered from December 2002.

The Revenue assessed the taxpayer to VAT for the period from December 2002 to November 2005 and the company to the same tax from December 2005 to September 2008.

The taxpayer and the company appealed.

The First-tier Tribunal decided the assessments were valid.

The appellants appealed claiming the tribunal had made errors in law by not explaining why the assessments were within the time limits and by deciding the company was liable for VAT when its turnover was below the registration threshold.

The Upper Tribunal said from the evidence...