VAT Registration Upheld on Business Transfer Appeal

• The FTT dismissed Mr KC’s appeal and upheld HMRC’s VAT registration of him from the date he acquired Wok to Box Ltd’s business.
• The tribunal found there was a transfer of a going concern: the takeaway continued without material interruption, from the same premises, with the same trade and name.
• It held that Wok to Box Ltd was a “taxable person” because its prior-year turnover exceeded the £85,000 VAT registration threshold, regardless of whether it had actually registered.
• HMRC’s third-party sales data showing £86,125.99 of turnover was accepted as evidence that the threshold was exceeded.
• The exception for expected turnover below the threshold did not apply because there was no evidence that, at the time of transfer, a lower turnover was expected.

Source: claritaxnews.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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