VAT for Intending Traders

VAT Question

My client is a newly formed property development company and we have recently tried to register them for VAT as an “intending trader” but HMRC have refused the application, asking for proof of land ownership and a copy of Planning Permission, neither of which my client has yet. What other evidence can I provide to get HMRC to accept their “intending trader” registration?

VAT Answer

Land ownership, along with a related planning permission, are clearly definitive evidence of your client’s business intentions.

Without these you have to provide HMRC with a sufficient weight of evidence to satisfy them of your client’s intention to trade and make taxable supplies. There is no definitive list of what will or will not satisfy HMRC but the following documents could add weight:

  • business plans that have been prepared;
  • communication with investors or with financial institutions that are being canvassed to fund the development;
  • documented meeting or other communication with the planning authorities in regard to the development;
  • documented early discussions or other communication with architects or planning consultants in regard to the development;
  • early tenders or quotes from building contractors in regard to the cost of the development.

Unfortunately the final say on whether or not to accept an intending trader VAT registration application is HMRC’s but the more evidence that you can provide them, the more likely they are to agree.

Tony Pocock, Vantage Fee Protect VAT Consultant

Related VAT Questions

VAT on Baby Clothes

My client, who sells baby gifts and accessories, has just registered for VAT. Are these zero-rated supplies like children’s clothing? Items sold include baby sized towels, muslin cloths, blankets

Payroll for UK employees going to work overseas and offshore remote workers

We are frequently asked to advise on the Income Tax and National Insurance treatment of UK employees who are being sent to work overseas, and employees who will work remotely from an offshore locat

Supply and Installation of Window Blinds

My client supplies blinds for windows and back in 2021, supplied and installed some blinds to houses at a new housing development before the houses were complete.

What if the Supplier has Charged UK VAT

Do I need to reverse charge VAT for any supply of services ((i.e., software from Apple, Microsoft, Adobe etc…) with no valid vat receipt (no GB vat number). Is any supply of services (i.e.

Are ‘as new’ goods classed as “second-hand goods” for the Second-Hand Margin Scheme?

My client buys high end, high value footwear, mainly trainers, from private sellers so does not incur VAT when he buys the footwear. However, he will only buy the footwear if they are still boxed a

FRS and transferring your VAT number

My client is a VAT registered sole proprietor who has been operating under the Flat Rate Scheme (FRS). His turnover is now around £200,000, and he has formed a new Ltd Co and transferred his busin

Vantage Fee Protect Customer Testimonials

Having changed over to Vantage a couple of years ago we have been very satisfied with the service. Especially the claims handling and technical advice lines for both our firm and insured clients on employment and business legal matters. The webshop Vantage offer allows our clients to join and pay electronically. This positively impacts our bottom line and makes things simple and efficient for our clients.

Linda Giles Chartered Accountant

Real people, real results

Vantage Fee Protect provide market leading Tax Fee Protection
Insurance schemes through accountants.

Don’t be shy,
get in touch

Vantage Fee Protect provide market leading Tax Fee Protection
Insurance schemes through accountants.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.