New member’s VAT is not the group’s responsibility

New section VDIM9025 (joining a VAT group) has been added to HMRC’s VAT Default Interest Manual. 

 

It confirms that, when a taxpayer is deregistered under its existing registration number on joining a VAT group, the representative member of that group is not liable for the new member’s previous liabilities before it joined the group – only future VAT due.

 

In addition, interest can continue to be charged by HMRC on an assessment issued to the taxpayer before it joined the VAT group.