Readers’ forum: Can HMRC’s VAT assessment issued in 2021 be withdrawn?

In 2020 one of my clients did some building work for £30 000 renovating a first floor flat that was owned by a retailer who used the ground floor of the same property for his business as a grocer.

My client charged the shop owner 5% VAT because the flat was used for storing stock and not as a residence of any person. The rate is relevant if a non-residential property is converted into a residential building. My client had a compliance review in 2021 and the officer assessed my client for 20% VAT on the gross payment received by my client on the basis that the work was carried out on an existing residential property ie £31 500 received x 1/6 less £1 500 already paid on a VAT return.

My client paid the assessment and thought that was the end of the matter.

However my client...