DMBM531020 - Debt and return pursuit: VAT: deregistered customers and revenue losses: initial action

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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.