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HMRC internal manual

VAT Registration

From
HM Revenue & Customs
Updated
, see all updates

Review of intending trader registrations: registration checks

General aims

The officer is to establish overall whether:

  • the registration is valid
  • the registration should remain in force
  • the trader has ceased to be an intending trader.

Specific checks

If there are doubts about whether the person is, or has been, in business for VAT purposes, consider whether invalidation or deregistration is appropriate.

Where the specified date has passed, the registration may be allowed to continue as long as you are satisfied that the intention to trade still exists.

If the trader has started to make taxable supplies, and there are no serious doubts that he is in business, delete the intending trader indicator by VAT 12 action.

Where a person was allowed monthly returns by virtue of their being in a consistent repayment position before they started to make taxable supplies, consider whether they are to be reclassified as payment traders and put on quarterly returns.