Late VAT Return Submission due to waiting for VAT registration number.

I just started my own business and was late in submitting the first VAT return, I registered for VAT on the 23rd Feb but for whatever reason the letter which contained my VAT registration number only arrived on the 12th June, so I could not complete my online setup before then. Once I got the letter, I completed the setup online and uploaded a vat return for the period in question only to find penalty fees and a "central assessment of VAT" which is much higher than my actual VAT return for the period. The period in question was before I opened for business so I only had input VAT from the purchases I made while getting the building ready. So where HMRC assessed I owed several thousand pounds in VAT I don’t owe anything and I am in fact owed some instead. I cannot appeal the late penalties yet as it says "You cannot appeal until you submit the VAT Return and pay your VAT", but I have now submitted the return, I do not owe anything and the central assessment is still there. What do I need to do to get this sorted out?

The central assessment is issued when no return is filed on the due date. The assessment is usually based on the estimated turnover figure you gave when you registered for VAT, there is a question that asks about your turnover in the next 12 months, so if you tell HMRC you expect to turnover over £100,000 then that would suggest £20k of VAT is due in the year or £5k per quarter. The formula HMRC uses also factors in an element of input tax that you might expect to reclaim, so the assessment might be nearer £4k. But it is just a made up figure. Once the VAT return has been filed, it then usually takes around a week for the system to be updated, I would expect to see the auto assessment reduced to Nil and replaced with the figure you submitted on your VAT return. under the new penalty regime, you incur 1 point for failing to file on time, you should be able to appeal that 1 point via your government gateway, the reason you are appealing is that it took until June for you to receive the confirmation of your VAT number. I am sure HMRC would accept that as a reasonable excuse and remove the 1 point. So eventually you will have a Nil assessment and the 1 point late filing penalty removed and then you just owe whatever is on your first return (unless it was a refund, whereby you will be contacted by HMRC as they always verify the first return of newly registered businesses).

Hi.
A central assessment is sent out in the abscence of a VAT return coming in to HMRC.
When the return is then sent and received by HMRC this assessment should be withdrawn upon receipt.
If this is not the case please call our Helpline on 03002003700 so we can look in to your acount and resolve this for you.
Thankyou.

Thanks for the responses. The assessment has now gone and so have the late payment penalty fees. So i may have been a bit quick to post. It is a refund on the first return as there was no income during that period just expenditure on getting everything ready to open. Thanks again.