exception from VAT

by **Jambo55** on Tue Sep 27, 2011 11:41 am

Morning all,

your thoughts please.....a business exceeded the VAT threshold approx. 12 months ago, continued to exceed the threshold for another 10 months, all of a sudden business has dropped and is expected for the foreseable future (business only ever exceeded the VAT threshold due to intense sole trader works to generate enough money to pay for a deposit on a house), business is now expected the continue and remain below the VAT threshold - is there any merit in applying for exception here as oppose to VAT registration - I am a bit sceptical that the exception application will be rejected as the threshold was crossed 12 months ago?

What do you think? Any thoughts much appreciated! Thanks

by **Kitty Kat** on Tue Sep 27, 2011 12:17 pm

Jambo55 wrote:Morning all,

your thoughts please.....a business exceeded the VAT threshold approx. 12 months ago, continued to exceed the threshold for another 10 months, all of a sudden business has dropped and is expected for the foreseable future (business only ever exceeded the VAT threshold due to intense sole trader works to generate enough money to pay for a deposit on a house), business is now expected the continue and remain below the VAT threshold - is there any merit in applying for exception here as oppose to VAT registration - I am a bit sceptical that the exception application will be rejected as the threshold was crossed 12 months ago?

What do you think? Any thoughts much appreciated! Thanks

Morning.

Purely my opinion, but I would have thought HMRC would be unsympathetic given this is only just being brought to their attention. The rules are hazy on how long you can continue to trade over the threshold before it stops being 'temporary'. 10 months, to me, seems longer than temporary.

by **Generix** on Tue Sep 27, 2011 12:50 pm

Kitty Kat wrote:
Jambo55 wrote:Morning all,

your thoughts please.....a business exceeded the VAT threshold approx. 12 months ago, continued to exceed the threshold for another 10 months, all of a sudden business has dropped and is expected for the foreseable future (business only ever exceeded the VAT threshold due to intense sole trader works to generate enough money to pay for a deposit on a house), business is now expected the continue and remain below the VAT threshold - is there any merit in applying for exception here as oppose to VAT registration - I am a bit sceptical that the exception application will be rejected as the threshold was crossed 12 months ago?

What do you think? Any thoughts much appreciated! Thanks

Morning.

Purely my opinion, but I would have thought HMRC would be unsympathetic given this is only just being brought to their attention. The rules are hazy on how long you can continue to trade over the threshold before it stops being 'temporary'. 10 months, to me, seems longer than temporary.

Agree with Kitty. However you have to try your luck with them, right?