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VAT Notice of assessment of tax

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    VAT Notice of assessment of tax

    Hi would appreciate some advice on the following matter which is creating a fair amount of stress.

    For the past 2 x years I had been contracting using an umbrella company (Parasol). Because of the 24-month rule I considered the possibility of setting up my own Limited Company, and actually did so though their sister company (ClearSky accounting). Some time as the two year period was approaching I was offered and accepted a non-contract permanent role. Because of this I never did actually did trade through the Limited Company I set up, but continued to submit timesheets to my umbrella company until I started my new employment. With the cooperation of ClearSky I then closed down the company, business bankk account etc.

    I have now received a demand for £326 from HMRC as I apparently had not submitted my VAT return. Ouch. My question is this - who is responsible here? I signed up for ClearSky's Assure Plan, on the understanding that it included completion of VAT returns, annual returns etc for a fix monthly fee. But heres the thing - I never actually made use of it, or submitted invoices through my limited company, but continued with the existing umbrella company until the end of my contract. No payments were made into the Assure plan either. It was a kind of a brief limbo period really.

    Any advice or information on how I should be proceed would be much appreciated. I will contact ClearSky at the earliest opportunity. What is particularly unsettling is the bullying nature of the HMRC demand for payment - no contact number, or means of dispute, just a straightforward demand and noting else. I do not feel that I am at fault here.

    Please let me know if you need any further information or clarification.

    #2
    Responsibilty

    Originally posted by happyuk View Post
    Hi would appreciate some advice on the following matter which is creating a fair amount of stress.

    For the past 2 x years I had been contracting using an umbrella company (Parasol). Because of the 24-month rule I considered the possibility of setting up my own Limited Company, and actually did so though their sister company (ClearSky accounting). Some time as the two year period was approaching I was offered and accepted a non-contract permanent role. Because of this I never did actually did trade through the Limited Company I set up, but continued to submit timesheets to my umbrella company until I started my new employment. With the cooperation of ClearSky I then closed down the company, business bankk account etc.

    I have now received a demand for £326 from HMRC as I apparently had not submitted my VAT return. Ouch. My question is this - who is responsible here? I signed up for ClearSky's Assure Plan, on the understanding that it included completion of VAT returns, annual returns etc for a fix monthly fee. But heres the thing - I never actually made use of it, or submitted invoices through my limited company, but continued with the existing umbrella company until the end of my contract. No payments were made into the Assure plan either. It was a kind of a brief limbo period really.

    Any advice or information on how I should be proceed would be much appreciated. I will contact ClearSky at the earliest opportunity. What is particularly unsettling is the bullying nature of the HMRC demand for payment - no contact number, or means of dispute, just a straightforward demand and noting else. I do not feel that I am at fault here.

    Please let me know if you need any further information or clarification.
    Hi. Ultimately you as the director are responsible for ensuring all returns are made. However, if you have paid for a package to have this done for you (and I stress "paid", not just said "OK I will use that") then ClearSky have not fulfilled their responsibilities to your Ltd. Co.

    So as I see it:

    1 The fines will need to be paid. Either by your LtdCo followed by a refund from ClearSky and missing returns submitted by ClearSky OR
    2 ClearSky settle the fine AND submit all the missing returns. OR
    3 ClearSky convince HMRC to scrap the fines AND submit the returns

    In any event you should not be out of pocket due to ClearSky's negligence. Also de-register for VAT asap if you are going permie and not using the LtdCo. If you haven't traded you have choice of leaving the company dormant in case you may use it in the future and just submit the annual return plus "dormant" accounts via Companies House, or close it down

    Hope that helps

    Comment


      #3
      This is likely to be a determination from HMRC of what they believe the estimated VAT to be, as the return was not submitted.

      If this is the only late VAT submission you have made, once the return has been submitted, if this is NIL (assuming no trade), they are likely to cancel this notice for you.

      I would speak to ClearSky as if this was part of the service you have paid for, they should submit this on your behalf.

      If not, you can submit the return online and then give HMRC a quick call to check the £326 has been removed from your account.

      HMRC aren't always a bad bunch and should be reasonable around these circumstances

      Comment


        #4
        You mentioned that you closed the company. If the dissolution has gone through there is no company for the penalty to be applied against anymore. A call to HMRC to inform them should then resolve the matter.

        If the dissolution is not completed I would go with what the others have already said above.

        Comment


          #5
          Many thanks

          Many thanks for the speedy replies, they are much appreciated. I will get on to ClearSky asap. In addition does anyone know of a suitable means of contacting HMRC, for this kind of enquiry?

          I have found this link which has no fewer than 130 different contacts:

          https://www.gov.uk/government/organi...ustoms/contact

          Comment


            #6
            Vat general enquiries would be able to assist you.

            https://www.gov.uk/government/organi.../vat-enquiries

            Comment


              #7
              I agree with the others here.

              I had the same issue a couple of years ago. Closed my company and went 'permie'. Final account submitted and any bills were paid - HMRC, accountant, etc,..

              I got a demand for incorrect VAT. Called them up and spoke to a very angry advisor. After I told him the company was closed - even quoted the letter from Companies House and the letter from the HMRC about the closing of said company - all i got back was "Well as the bill was in your company name we will have to clear the debt won't we!".

              I responded with "ok Thanks." He wasn't a happy many. Sometime they act like its their money they are talking about.

              Just call em up and tell them. thx

              Comment

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