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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5115
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

Hi, I have just had an HMRC vat securities notice issued against

Customer Question

Hi, I have just had an HMRC vat securities notice issued against 2 of my companies that are not currently or have ever traded.

Can I simply close these down to avoid having to pay this?
Submitted: 3 years ago.
Category: Tax
Expert: replied 3 years ago.

Hello and welcome to the site. Thank you for your question.

If you have received VAT Security Notice against 2 of your companies that are neither trading nor have ever traded and that they are dormant, you should write back to HMRC and advise them of this fact.

It is a criminal offence to continue to make or receive taxable supplies without giving the security shown on a notice of requirement. Taxable supplies mean the supply of any goods or services that are taxable. This includes supplies made between members of a group registration.

If we have sent or given you a notice of requirement and you continue to make taxable supplies without giving the security in full, we may prosecute you. In the event of a successful prosecution, you may have to pay a fine of up to £5,000 for each taxable supply you make without giving the security.

If it is your intention not to carry on business through either of those companies then you are best adviced to have the companies Struck off at Companies House.

You can do that by completing form DS01. More information on this can be found here.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 years ago.
Relist: Answer quality.
Lifted word for word from the hmrc site!
Expert: replied 3 years ago.

Stephen, I have outlined what you should do in order to be in compliance with the law.

a) write to HMRC advising the companies are not trading
b) complete Companies House form DS01 if it is your intention to close the company and have them struck off.

I have used HMRC terminology as stated by the tax authority to highlight consequence of non compliance, to elleviate any misunderstanding.

I hope this is helpful