SolvedDMBM531020 | Debt and return pursuit: VAT: deregistered customers and revenue losses: initial action
From HM Revenue & Customs · Debt Management and Banking Manual
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Each type of de-registration is recorded on the VISION ledger (LR) screen and identified by a specific code.
| Type | Code |
|---|---|
| Ceased to trade | 01 |
| Transfer of a Going Concern (TOGC) | 02 |
| Exemption from registration | 03 |
| Continuing to trade below the threshold | 04 |
| Invalid entry/duplicate registration | 05 |
| Missing Trader | 06 |
| Company joining a VAT group | 07 |
| Assets transferring as TOGC to/from a VAT group | 08 |
| Customer joining Flat Rate Scheme | 09 |
Before taking any action to recover a debt, access VISION to make sure the debt has been properly finalised.
If there are any:
‘open’ periods (that is periods for which a return has not been submitted and an assessment has not been issued) or
unresolved ‘error’ returns
consult the VRS Deregistration team.
Current debt management action must also be taken into account. For example, if distraint has already been levied on the customer, urgent action will be needed to preserve the assets. If a debt is only identified after de-registration, it is important to contact the customer quickly to improve the possibility of collecting full payment.