Much too late

Allan Naylor was a sole trader until November 2006 when he incorporated his business, the taxpayer. He submitted form VAT 68 to retain the same VAT number as part of the transfer of the firm as a going concern.

Naylor failed to submit the VAT return for the period 2/05, leading HMRC to issue a central assessment in April 2005 to collect VAT of £3,295, which the taxpayer paid.

He submitted a nil return for the period 2/05 on behalf of the taxpayer about seven years later, and claimed a repayment of the VAT he had paid.

The Revenue refused on the ground the claim was time barred under VATA 1994, s 80(4). The taxpayer appealed.

The First-tier Tribunal agreed the tax department was not liable to make the repayment because it was capped by s 80(4).

The taxpayer’s appeal was dismissed.

Issue: 4475 / Categories: Tax cases , VAT