TC09590 - [2025] UKFTT 00878 (TC)

Mrs Walmsley addressed the issue of the VAT deregistration of WM, stating that she was first informed of the deregistration by HMRC on 27 January 2022. She asserted that RRP ceased paying VAT to WM immediately upon receiving this notification and ceased trading with WM altogether following a meeting with HMRC on 11 March 2022. She denied any prior knowledge of VAT irregularities and maintained that all payments made to WM prior to 27 January 2022 were made in good faith. During cross-examination it was put to Mrs Walmsley that RRP had continued to deal with WM even when the latter had been de-registered for VAT. Mrs Walmsley explained that the payroll had to be processed and thousands of workers paid, but the accountants had been consulted and her understanding from Mr Ashford was that RRP should not pay across any VAT to WM post the notice of de-registration. She had, upon receiving notice of WM’s de-registration for VAT telephoned Mr Hamilton who had assured her that he “would sort it out”. She had further been comforted by the fact that RRP had itself been de-registered in error and then subsequently returned to the register. She had, as result, paid invoices from WM without the VAT.