Issues Getting EDR Changed Since June

Earlier this year, I applied for VAT. After several months of delay, I finally got my VAT number. Since June, I’ve been trying to have our incorrect EDR changed. When I applied for VAT earlier this year, for some reason, the date given was 25th April 2022, which is clearly incorrect as it’s over a year ago, and it's also just the founding date of the company. I have been trying to sort this issue out since June, trying to get it changed to the 1st June, which is when I began to start working with VAT, and on 12th July, I received a letter asking for more information about the company, which I sent back. However, on the 9th August, I received another letter stating that the my previous response has not been received, and that the original, incorrect date, is being kept. As I did very much send that letter within a day after I received it, I don’t know why HMRC have not received it yet. I was advised on the phone by an HMRC agent to not send any returns whilst this process of changing the date is still ongoing. I have sent a letter explaining this situation, alongside also getting in touch with HMRC phone support regarding the missing original letter I’ve sent back to HMRC. The advisor sent me a digital copy of the letter for me to fill out again, and said he would pass it along. I just received more correspondence from HMRC, telling me that despite the letter I personally sent explaining the situation and how it makes no sense for our EDR to be set to the 25th April 2022, I was told that the EDR is set to remain the same. 25th April 2022 is the official founding date of the company and I have never purposely requested for it to made our EDR, for several reasons. Firstly, at that point, the company had no timeline for when we would register for VAT or if it would even happen in the next few years. We have only began to charge VAT on 1st June 2023, which is what I wished for the EDR to be set to once I was made aware of this incorrect EDR. Naturally, I would’ve never selected on purpose such an old date for the original EDR, given the one year’s-worth of VAT liability it would have put on the company, needing to retroactively cover the VAT out of our own pocket. Naturally, no other filings or preparations for VAT were done at this time as well, as again at that time we had no plans to apply for VAT. In addition, I do not know how HMRC expects us to properly file VAT for quarters so long ago, when again we had no plans to be VAT registered for. As such, this must me a genuine error or misunderstanding when the EDR was selected for my company by HMRC, as once again a date set over a year before we sent our initial application for VAT wouldn’t make any sense for us, and as far as my understanding goes when talking to other business owners and accountants about it, such far back dates aren’t normally chosen by HMRC. I further made this clear in the additional form HMRC has sent me to fill out, but was not delivered. Our first VAT is still not filed as we have been advised over the phone by HMRC to not do so until the EDR is changed. And once again, filing for quarters so long ago would be next to impossible for us. The first request to change the EDR was also filed long before our first VAT was due. I’ve also spoken to other businesses owners and accountants for advice, they have all said stated a similar sentiment, that EDRs that are set to a date so long ago, must be a mistake, and that accounting and bookkeeping for it now is nearly impossible. I've spoken to an agent on the phone about it, and all he was able to suggest was to send another letter. He was unwilling to tell me what other information I should include or what to even say in it that will finally explain the situation fully and show that this EDR is simply incorrect. I am planning on sending another letter soon, with most of it just being what I've already said above word for word. But is there anything else I should include in it, or any other ways of finally sorting this issue out and get our correct EDR date sorted. Any and all assistance in this will be very welcome, so that our correct EDR can finally be set.

Have a read of this internal guidance from HMRC https://www.gov.uk/hmrc-internal-manuals/vat-registration-manual/vatreg25350 It is not clear from your post, whether the wrong date is as a result of HMRC's error or your own. If HMRC have made the error then it should be fairly simple for HMRC to correct (their error), but if you put the wrong date on the application form then that is your error and you need to convince HMRC to fix your error. If you made an error on the application, HMRC have some discretion to allow a correction, but you are looking at a technical point of law which does not allow a business to change their EDR once it has been set. Emotion will not work here, facts matter most. As a VAT professional, I can assure you that I regularly see businesses seeking a historical VAT registration date, there are many reasons (sometimes because there is a monetary advantage and sometime because they failed to register for VAT at the right time). I appreciate the people you have spoken to have said "it is clearly a mistake", but I challenge that and so is it a mistake? It is common for a newly incorporated business to seek a VAT registration in line with their incorporation date. It is also common for a new company to wait awhile to see levels of trade before deciding to register for VAT and at that future point, the business can choose to backdate the registration to their incorporation date or register from a current/later date. All depends on the type of business, type of customer, values involved, etc. My point being, HMRC have to spot the difference between a genuine error or a business trying to back out of their original application once the applicant has realised it will cost them money. You'll need to be patient and keep calling and writing to HMRC. Ask HMRC for a review of their decision and provide some additional information to clearly demonstrate how you made the error, use the link above as a guide to help formulate your response, I'd not bother mentioning things like "an EDR set to a date so long ago must be a mistake" as that statement is subjective/opinion. Find reasons why you made the error, was the form not clear, is English not your native language, did you mean April 2023 instead of Aril 2022, were you poorly advised by an Accountant, etc.

 

Hi. If the Registration for VAT was voluntary then the effective date of registration is your choice and if you clearly stated a date which we have not accepted correctly then I would recommend just confirming the correct date of your registration and confirm why you require it to be this date. Thank you.

Hello, Yes the VAT was voluntary as the company is well below the threshold for mandatory VAT registration. However, despite that, I'm still having these issues having the date changed.