VAT registration people asking for contract

[DaveB]

sneaky IR35 investigation - Unlikely but possible, now that IR and HMCE have merged into HMRC.

Still, VAT fraud is what's foremost in their minds, and it's unlikely that an overzealous VAT bod would take the initiative on IR35 because they have such different priorities.

Bear in mind that although HMRC are all now supposed to be one big happy family that doesnt mean they actually talk to each other. Much like a normal family really. As far as I know they are still working on integrating their IT systems etc.

The VAT Man is still only really interested in VAT, the Revenue Man is interested in IR35 but if the VAT Man doesn't make a point of telling him about it he won't ever see it.

[conqurer]

The letter said, they wanted to see the contract in order to decide whether they should register me or not.

Thanks for everyeone who contributed to this post.

Regards.

[conqurer]

Security Checks

I have heard from VAT people again after they received a copy of my contract. They're saying that security checks are taking place now and the process could take upto 12 weeks.

Regards.

[Cooperinliverp00l]

i had that letter about a month ago asking for things like BUsiness PLan, Contract, proof of sales e.t.c. I think it is just to check you are a legit business. I send photo copies of everything and one month later had my VAT number through. It took 2 months in total from application to receiving number.

Good Luck

[Qdos Contractor]

Prior to the advent of carousel fraud HMRC would generally not have asked to see a contract to allow registration.

Currently however because of carousel fraud, the registration process has become much more rigorous. This applies to every new business not just IT consultants. Unfortunately part of this general tightening up does include asking for copy contracts, which if not provided might mean a refusal by HMRC to allow registration.

At the moment I have no evidence to suggest that documentation obtained in the registration process is being used for IR35 purposes but this is not to say it might be at some point in the future.

[Dark Black]

How common is it that VAT registration is refused?

I ask this as when returning various documents as requested I did not include my contract - primarily as it's in the process of being rewritten to more accurately reflect working practices. Is this likely to predujice my application? Can I appeal if this happens?

[Devlin]

Surely a copy of an invoice with "VAT registration pending" on it should be enough??

[Lewis]

I sent a copy of my signed contract (which references a standard terms and conditions document which I did not send). Plus all my invoices (with VAT pending) plus bank statements showing paid invoices. Hopefully that's enough to prove legitimacy. Someone here got their VAT quickly with no questions and they are with SJD so maybe a note from an accountant does help? Not too pleased about having to wait until October!

[Old Greg]

I sent a copy of my signed contract (which references a standard terms and conditions document which I did not send). Plus all my invoices (with VAT pending) plus bank statements showing paid invoices. Hopefully that's enough to prove legitimacy. Someone here got their VAT quickly with no questions and they are with SJD so maybe a note from an accountant does help? Not too pleased about having to wait until October!

SJD handled this for me in February and it was through in 3 - 4 weeks with no questions. Maybe it was before the MSC exodus.

[chubba]

Looks like a bit of a backlog building up:
http://www.contractoruk.com/news/003307.html

Not surprised if they are asking all these questions! I set up my ltd co about 4 years ago and never had this sort of fannying around. Just goes to show how good things were under Blair...