Hardship application to defer paying VAT assessment

In October 2018 the taxpayer was issued with a VAT assessment for £6 189 relating to errors made on the December 2015 and March 2016 returns. The director refused to pay the assessment on the basis that he was owed a £13 000 VAT refund for another period as well as nearly £35 000 in repayments linked to the construction industry scheme. He appealed to HMRC’s hardship team asking for payment of the assessment to be deferred on the grounds of financial hardship.

The officer reviewing the hardship claim asked for a lot of information about the company’s financial affairs including an analysis of debtors and creditors in the latest year-end accounts; copies of bank statements; management accounts budget and cash flow forecasts; details of investments and overdraft facilities; and an up-to-date analysis of debtors and creditors.

The taxpayer failed to provide the information so HMRC...