First of all, you have already applied so stop stressing.
Now looking at the probabilities , it is highly inlikely that a case will be refused only on a missing latest VAT return. Although it is mentioned in the requirement of the documents I would not worry about it that much if you have provided more then enough information to cover all other points in the requirements.
Once you know the decision think from that point onwards.
In terms of appeal and re-application:
- Appeal - if the application is refused on the point of not providing latest VAT return as evidence, you may have less chance of a win. However the argument could be that your business bank statements would clearly show payments to HMRC VAT account every so often to show as a proof that payments are being made on regular basis, if you know what I mean. So your argument is still valid.
- Fresh application - This can be done ofcourse but there is no guarantee of a success, ECO may find some other point of refusal. On the same time you will have to pay the full amount for a new application.
I would suggest, that you hope for the best and wait for the decision and than make up your mind.
Hope this helps.
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