Correcting liability errors

HMRC has published Revenue and Customs Brief 7/2016 as a reminder that the misdirection extra-statutory concession 3.5 is obsolete (tinyurl.com/rcb72016). It also gives notice that from 1 August 2016 HMRC will no longer routinely consider requests not to pursue the tax due.

Requests for registration for VAT in which businesses ask HMRC not to pursue net tax due on supplies where VAT has not been passed on to customers must be submitted by 31 July 2016. Claims should be sent to: Liable no Longer Liable Team HMRC Imperial House 77 Victoria Street Grimsby DN31 1DB.

Business Brief 28/04 contained now outdated references to what was known as ‘the misdirection class concession’ and examples of its application.

The brief stated that where a business chose to register for VAT belatedly in respect of supplies that had previously been treated as exempt but should have been treated as taxable...