Co A sold a fried chicken business to Co B and the transaction was treated as transfer of a going concern. HMRC visited and issued a compulsory registration for Co B as the turnover was threshold for VAT registration at the time the TOGC took place. Co A were also assessed for the period when they should have been registered. However, their appeal was struck out on the basis that that the Tribunal had no jurisdiction to hear the case, because no return had ever been made by Co A. Co B lost its appeal. 

This case highlights the due diligence that should be carried out when you are considering buying a business, particularly a catering business, as a transfer of a going concern.