Kaffel decision and late VAT registration

There is one aspect of VAT that I find very frustrating. No I’ll go further than that and change the word ‘frustrating’ to ‘annoying’. The situation to which I refer is when a taxpayer faces an anxious VAT challenge on a particular issue which is then worsened by lengthy HMRC delays in responding to letters or emails. I find these delays as unacceptable as a pet shop displaying a sign that says ‘no dogs allowed’ in its window.

In this article I will share my thoughts about the recent First-tier Tribunal (FTT) case of D Kaffel (TC9471). To cut to the chase on 9 March 2021 Mrs Kaffel sent a letter to HMRC requesting an exception to being registered for VAT on the basis that the turnover from her business as a relationship counsellor had unexpectedly boomed during the Covid pandemic temporarily exceeding the...