VAT Payments too high

Hi, I registered for VAT in Early August, but didn't receive my number until mid November. As I didn't have the VAT number, I could not commence work for a company as planned so the company has earned nothing until Late November, and the predicted income is a lot lower than expected. I've been sent letters for outstanding monthly VAT based on the predicted turnover I inputted. Can I request a lower monthly payment based on lower predicted income and the fact I could not trade for 4 months?

When you do not file a VAT return, HMRC will estimate what they think you owe, the surcharge liability notice/letter you have received will demand payment of this estimated amount. The estimate is a formula based on the turnover you stated on your VAT registration application. The fact you have received an estimated liability means that you had a VAT return period where you did not file a VAT return (probably due to the delay in you receiving your VAT certificate in the post). Easiest solution is to file the outstanding return...it may have been that you requested to be registered from say August 2023 and HMRC issued you a VAT number in October 2023 sometime, but you did not get the letter/confirmation of VAT number until mid-November, by which time your first return may already have been due (likely covering the period August 2023 to October 2023). Calculate what sales you made in the VAT return period, don't forget to calculate any input tax on purchases that you are entitled to reclaim and then file that return, that filed return will then tell HMRC what the correct amount of VAT is for the period, it might be Nil (if no sales made), it might be a refund if you have purchases you are reclaiming VAT on, HMRC will then cancel the surcharge letter, cancel the estimated amount and replaced with the value shown on your submitted VAT return. If you don't owe any VAT to HMRC, then the whole matter corrects itself. if you do owe HMRC money then you make payment at time you file the return.

Hi,

Please contact our VAT team so that we can look in to this for you.

VAT: general enquiries

Thank you.