Hoping I can find an answer here as my accountants are doing the best they can with HMRC, but it seems like HMRC make things as complicated as possible.
We tried to submit VAT recently, however, HMRC said our VAT number was invalid. Gave them a call and apparently in Jan they cancelled our VAT as we didn't respond in time to a MDT letter. I never received this letter, and neither did my accountant. No emails or calls either from them. This could've happened due to an office move we had, the strikes or a slip up from the post man as we are incredibly due diligent with mail.
I managed to speak to HMRC who told me that we can ask for the VAT number to be reinstated or just apply for VAT again. However, last time we did this it took nearly three months.
So, what (as a business) are we supposed to do in the meantime? We (luckily) didn't have any VATable sales when we initially applied for VAT in August-November. However, we're now dealing with some very large organisations who we've charged VAT on after we got VAT cancelled, and we have over 60k of sales coming up which was quoted back in Dec with VAT.
Exlaining this fumble to our clients accounts team could lead to us being dropped as a supplier. Do we redo invoices where we charged VAT or do we leave it and back date VAT once we reapply?
I can imagine if a business relied solely on VATable sales this could put them under, surely there's a way to survive during the limbo period?