This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Late registration of vat

Custard
Posts:2
Joined:Sat Dec 16, 2017 4:36 pm
Late registration of vat

Postby Custard » Sat Dec 16, 2017 4:47 pm

My wife runs a ice cream shop,I'm now looking at her books,she clearly has gone over the vat registration 93k,I'm at a loss as to what to do,do we have to pay the vat on all 93k or is it over the amount of registration 83k(this for year 16/17.)
We have subsequently gone over this season..
Do I just register now.
What can I expect to happen.
Meeting my accountant next week,but,would like to have an idea of what course of action is best,
This wasn't done as avoidance,I work away,she just banks all the money and paid the bills.
The business is seasonal,April to October,she closed this year in September because we went over.
Any help would be. Appreciated,.

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Late registration of vat

Postby robbob » Sun Dec 17, 2017 7:00 pm

You need to find the month in which you 12 month rolling turnover first exceeded the registration date - eg test end of Oct 17 = 1/11/16-31/10/17 and test end of Nov 17 = 1/12/16-30/11/2017.
If you exceeded threshold in October 2017 you will need to register from 1/12/17 - so you get one full month after the month in which you exceed the threshold before you need to register.
Hopefully this is not as bad news as you may have feared.
This wasn't done as avoidance,I work away,she just banks all the money and paid the bills.
You are where you are main thing is to ensure you get the registration done asap and make appropriate business decisions going forward - often you need to get turnover to something approaching 100k to not be any worse off after you factor in vat paid off - I.e you could feasibly make more profit on 84 turnover with no vat that 93k turnover paying vat.
The business is seasonal,April to October,she closed this year in September because we went over.
Seasonality shouldn't come into it normally as all calcs are done with reference to 12 month period.

There is a small possibly you could have been granted exemption for registration if at the time you exceeded the threshold your next 12 months turnover was expected to be below the de-reg threshold - similarly you may be able to de-register if your expected next 12 month turnover is expected to drop - the vat office would likely expect calcs and reasoning before allowing any de-reg when rolling turnover is over the threshold.

Finally of note you are obliged to register immediately on acquiring a business if you carry on the trade of a previously vat registered business - presumably this is not relevant.

Custard
Posts:2
Joined:Sat Dec 16, 2017 4:36 pm

Re: Late registration of vat

Postby Custard » Mon Dec 18, 2017 10:27 am

Thanks for the info,
Having meeting with accountant this morning,will lent you know outcome.


Return to “VAT & Excise Duties”