Lesson in Keeping on Top of Stuff
A recent case has been through the Tribunal system and out the other side with defeat for the taxpayer who was trying to get a VAT deregistration backdated.
HMRC say they can only deregister a business when they have received the application to deregister. Despite reasonable clerical delays making the application late, the Tribunal have decided there is nothing they can do to compel HMRC to backdate.
The lesson from this has to be that you sometimes need to be prepared to act straightaway, and you should always understand what things have to be done today and can’t wait for tomorrow.
Not a factor in this case, but it also reminds us that you should always keep your accountant up to date. It is clearly no use to be told after the year-end that you could have deregistered and saved yourself a load of VAT.