Late Submission of an Appeal

In the case of Mr Mohammad Javid vs HMRC, Mr Javid, a sole trader, submitted a late appeal against an assessment issued by HMRC for over £25,000 worth of output tax. Whilst it was accepted by all parties that this output tax was correctly charged, Mr Javid appealed on the basis that HMRC refused to grant credit for input incurred in the same period.

Mr Javid purchased a variety of electronic goods for a client using cash, gift cards and his personal bank cards. On a visit to Mr Javid’s premises HMRC concluded that they were not satisfied with the evidence provided to support this input VAT being incurred as it did not meet the formal requirements of a valid VAT invoice.

Over 1 year after the assessment had been issued, Mr Javid changed VAT advisers and they wrote to HMRC seeking clarification of the dispute at which point, the Appellant was out of time for lodging an appeal. In previous written correspondence, HMRC had drawn Mr Javid’s attention to the possibility of alternative evidence being considered, however this was not acted upon for several months whilst Mr Javid sought alternative representation and HMRC considered the matter closed. For this reason, whilst the evidence eventually submitted was valid for consideration, the lateness of its submission meant the appeal was rejected.

It is critical to act quickly when it comes to VAT matters to avoid falling foul of time constraints imposed by HMRC, even if you hold the required evidence.

If you have been received an assessment from HMRC, please feel free to discuss your options with one of our experienced VAT consultants to explore your options.

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