Late VAT threshold breaking options

[Dolce]

What are my options after going over the vat threshold by accident by max in Dec Jan and Feb

I am an ebay trader and have only been trading just over 2 years as a limited co. I do my own accounts using online software and support.

I have found that my rolling 12 month calc was out of kilter and now reviewing the figures to calculate corporation for tax year ending 30sep2016, I find I have just gone over the 83k vat limit in Dec16, Jan17 and Feb17 and am very concerned how I should approach HMRC to achieve the best outcome.

Ideally I would like an exception, and then hope to register in a planned way in a year or two, but I have no idea how to go about this, or whether it is possible. When I do register, I would be best on the FRS at 7.5% as the complexities of the full scheme would be beyond me and I need to keep it as simple as possible.

Approx figures are Dec83800, Jan83010, Feb84240. Three months, just over the 83k limit, but then drop significantly with May's rolling 12 month being just 78k to date.

My business is extremely seasonal and I estimate end of year total to be approx 68k if the next few months achieve the same sales as last year during my trading weeks. Last year was almost the full 83k, but this year I have had a number of issues, with poor health which has necessitated reducing my working hours, the marketplace driving prices down and suppliers dropping my niche products and raising prices on others.

I would love to register for the flat rate scheme and grow sales, but I can't see it happening for at least 18 months now whilst I set up new suppliers and in the meantime the extra tax burden would really hurt my small business. I have no intention of growing beyond a one-man band as I have health issues and need to keep the business as simple as possible.

Should I request to register for the FRS and take the hit, or are HMRC likely to accept an exception request? If they reject an exception request, will they register me on FRS or would I then have to go on the normal scheme and get hit with a mountain of paperwork? If I do decide to register retrospectively, when would I request as my registration date and when would my VAT be due? Will I receive a penalty due to it not being within 30 days? As I say, I don't currently have an accountant or tax adviser , as I have been nervous about choosing the right support re strong tax advice. But being careful to keep costs down and do as much as possible myself, I have maybe got my fingers burnt and now want to sort that out. I don't want to just walk into my nearest high stree accountant. I would rather check out advice online and choose an adviser based on the quality and speed of response. Advice urgently requested as I really need to contact HMRC asap now that I have discovered the error.

Many, many thanks in advance.

[les35]

By all means write to HMRC, and try to argue that your turnover will be below the threshold in the next 12 months. But, you should note that they are not likely to grant you exception, as you will be notifying late.
Worst case scenario is that you do become registered, with penalties 15-30%, but you can argue those down.
But, you should engage an Accountant or VAT adviser (DM me if you wish). The cost will be worth it.