Gone over VAT threashold now what?

[abc-inflatables]

Hi my tax year runs April to April
I have just gone over the VAT threashold rolling monthly.
Do i have to register?
I will be back below the threashold next month.
How would the vat man even know i went over?

[tom 7000]

You write to him, tell him you went over, explain its a one off and the reason why and then say you are not likely to go over again ( as long as its true) and they normally write back and say its ok, you dont have to register.

If you dont do this and they find you....theres all sorts of fines and penalties and you owe lots of vat etc...

Theres enugh rules to break that we dont know about, dont break the ones you do ( by not telling them) especially if they are in your favour!

Your accountant will also tell you that you should have registered when he does your accounts at the end of the year.

If your business is that big, I am guessing you are trading as a limited company, if not you need to consider this as it will save you some tax amd limit your liability. I have a ltd guide on trading as a company if you want it tom@ttca.co.uk

I have done it a few times for people, so nothing to worry about.

[abc-inflatables]

Thankyou

[Generix]

Thankyou

Considering you are possibly disagregating your business as well you might want to appoint a tax specialist to help you...

[cheeky charlie]

You can apply to HMRC for exception from registration under s3, Schedule 1 VAT Act 1994 if your taxable supplies in the next 12 months is not expected to exceed the de-registration threshold:

(3)A person does not become liable to be registered by virtue of sub-paragraph (1)(a) or (2)(a) above if the Commissioners are satisfied that the value of his taxable supplies in the period of one year beginning at the time at which, apart from this sub-paragraph, he would become liable to be registered will not exceed [De-Registration Threshold, currently £71,000]..

HMRC recommend that you still complete the VAT 1 registration form but tick the box asking for exception from registration explaining that in the long term you will be trading under the de-registration threshold. If they grant you the exception, you still need to let them know if you have a change in circumstances i.e. something else happens that puts you over the registration threshold again - but again, if its a one-off you can re-apply for exception to registration.

I have successfully had it granted 3 times in one year for a client

If you don't notify them and you exceed it at a later date, they could look to backdate your registration to when you first went over the threshold.

Further info is here:

http://www.hmrc.gov.uk/vat/start/register/when-to-register.htm

I hope this helps.
C

[abc-inflatables]

Thankyou
Im going to join the flat rate scheme