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Belated registrations
Many clients come to actionvat who have failed to obtain a registration at the correct time. This poses many problems, including a liability to the full arrears of tax and a penalty. One client, working in Docklands, sought advice. Actionvat supervised the registration, negotiated with the clients to pay the arrears of VAT, provided mitigation information to HM Revenue & Customs and assisted the client up to the completion of the first VAT return. The mitigation of the penalty was greater than the fee charged.
Property redevelopment
A client wished to redevelop a site in a run-down part of London. This involved the demolition of the existing buildings – part of a terrace – and replacement by offices on the ground floor and residential accommodation on the upper floors. Actionvat supervised the “option to tax” and recovery of the input tax. Initially HM Revenue & Customs had refused to treat the residential accommodation as “new” but the provision of information from the architect resulted in a full recovery of the input tax.
Transfer of a business as a going concern
A client purchased machinery used for stamping out foil containers for food. VAT was charged, but HM Revenue & Customs would not allow its recovery, on the grounds that what was being transferred was a business for which special VAT rules apply. Lengthy correspondence between the Accountant and HM Revenue & Customs has resulted in an impasse, although an appeal had been lodged in time.
Actionvat reviewed the documentation and the law and approached HM Revenue & Customs saying that there was no case to deny the input tax. HM Revenue & Customs resisted and the matter was listed for a hearing at the VAT and Duties Tribunal. Shortly before the hearing, HM Revenue & Customs withdrew and repaid the input tax to the client and met all the adviser’s fees.
Whilst many cases taken to Tribunal have a very poor chance of success, there can be situations where HM Revenue & Customs has a poor chance of success but continues to defend the action. A determined client can achieve the correct outcome by staying the course.
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