HMRC Suspended during VAT Audit - Been Registered Prior to shipping any inventory
US Seller - registered for UK VAT prior to sending my first piece of inventory. Dutifully paid my VAT since then. They emailed me about an audit in February and gave me 7 days to send them 2 years worth of records. I was out of the country on vacation and didnt see the email until about 7 days past the time they gave me to respond, at which point I sent over the records they’ve requested. They’ve emailed a few more times asking for more information, which I’ve provided.
They suspended my amazon account. I’ve been unable to get anyone at HMRC to talk about unsuspending me even though I am a taxpayer and have responded to everything they’ve asked for.
I have a UK VAT accountant helping me but at this point I think I need a solicitor (lawyer) to help get them to respond. This is absolutely insane that they are this agressive for a registered taxpayer.
They give me 7 days to respond but regularly take 2 weeks to respond back.
Any solicitor recommendations in the UK?
Anyone else with this problem?
45 replies
Seller_qZO3ZCjoBXEeL
HMRC - ‘The VAT Man’ are a notoriously draconian branch of government. They are about the only organisation with the ability to immediately shut down any business or individual without any apparent due process.
They obviously believe they have detected an anomaly in your VAT returns. Other than waiting for a ruling, the next proactive step would be to have an accountant review your returns and accounts to date to look for any problems proactively so that you can get ahead of any issues.
Seller_s0Fyj0kEU4sRp
Don’t waste your time and money on a solicitor in dealing with this situation. They will not be able help you any more than what your accountant is doing.
HMRC has found something in your accounts that they are not happy with.
You need your accountant to find out what they are and get you to address it before HMRC will do anything. As they have suspended you then it points to more than one thing that is the problems.
The further information HMRC has requested usually points to whether their concern may fall under.
HMRC needs every i’s dotted and every t’s crossed.
Good luck.
Seller_QlN0mmCAFPtjZ
I am unsure whether HMRC have the power to suspend your Amazon account . They can start legal action against you if they find evidence of wrong doing . Maybe they can request that Amazon suspend your account . That is possible .
Have you managed to communicate with Amazon regarding the reason for your account suspension ? Have they said that it was on the request of HMRC .
Who has been handling your vat submissions since you have been trading ? Is it an accountant or yourself . Might be a situation where you unknowingly completed the submission incorrectly .
Hopefully you get this sorted . The tax authorities have wide powers so often they have the power to confiscate without first having to prove guilt so best you get someone who knows tax law very well , someone inside the UK
Seller_aNdwlgb1MCy9a
They have found nothing. I did not respond to their email within 7 days (it was 14) so they shut the account down. It’s likely I’ve been overpaying according to my accountant and they owe me a refund.
Their is a new law apparently that makes amazon liable for the vat if the hmrc tells them to shut the account down.
I’ve been caught in a net designed for scammers and I’m not a scammer.
Currently redesigning my business so I no longer have to import into the uk so they’ve accomplished the opposite of their goal in my case.
Seller_0pkMTMROIPEmY
HMRC can now issue Red Notices / Flags to online market places that signed up the PAC agreement.
The red flags, known as Joint and Several Liability (JSL) notices, were introduced in 2016 to protect British businesses from being undercut by overseas sellers committing VAT evasion.
Seller_aNdwlgb1MCy9a
In my case they suspended me prior to having any of my data. In any case I’m not sure why you would suspend someone who has filed and paid vat (overpaid because our euro sales are higher than the uk sales - therefore the import vat is even higher than what we owe) and who has shown to be co operating.
I could certainly understand had I never filed vat or as you said, perhaps took an inordinate amount of time to respond to the audit notice.
And why are they leaving me suspended whilst I’m providing them data and they are taking their sweet time to respond? Feels like a shakedown to me.
As I said, I’m figuring out how to cut the uk entirely out of my business, as it’s clear they are not interested in it.
Seller_GMPMsyrUFerQd
Sorry to hear that it is suspended if you did everything right. But in the past, I was buying from FBA (UK Vat registered) US sellers and when requested vat invoice on 3 occasions - response was the same in every case: “sorry, we don’t have this facility available”…
When I take a look into this now - no more competitors who are also vat registered, and can offer products I sell with 30% discount… (US sellers UK vat registered) So I think things are going a good way…
As I said, if you did everything right - shame it happened to you, but the probable cause is - many US sellers abused this market…
Seller_7qs2OyqjrdYOr
Hi, I went through a VAT audit last year so I can understand the stress especially when it takes them weeks to respond with another set of almost identical questions. My audit lasted about 3 months if that helps to give an idea of the timescale, but thankfully my account wasn’t suspended and the audit concluded successfully.
You were suspended either because you didn’t reply within the timeframe given or because there are serious problems with your accounting. Given that you already have a VAT accountant and were suspended early on I’d guess it’s the former. Honestly I think you have to just wait it out as I don’t see how a solicitor could help.
Seller_PtSZDCRO4f7e5
Hi
Ask your accountants or who ever looks after you here to ring up HMRC to give your more time as it is physically impossible to gather all your information to give to them within 7 days.
Lets say they asked you to give the info by 15/04/19. Ring them up asking for an extension till end of May & they will oblige.
As @PCBuyIT pointed out this has happened to you.
It seems that you have not been paying the right amount of tax or you missed submitting a vat return for one period. A solicitor would not be able to help you as you would have given your accountant permission to speak on your behalf.
Peace
Seller_SHpe5c4eREBFN
It seems to me that there is some information lacking here and it may well be missing to you also
Was it HMRC or your accountant who emailed you? I have never heard of HMRC giving such a short timescale in a request for information.
Have you been filing your returns or your accountant?
