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Where Taxpayers and Advisers Meet

Late V.A.T. registration.

Posts: 6
Joined: Wed Aug 06, 2008 3:32 pm

Postby Squinter » Fri Apr 07, 2006 4:29 am

For a sole trader submitting a late application for V.A.T. registration what are implications if
registration should have been in June 2002. In this example customers are V.A.T. registered and the work done is both zero and standard rated. V.A.T. is paid on materials and services purchased for business. Would trader suffer loss on V.A.T. payable for work done before April 2003 and not be able to reclaim V.A.T. on materials bought before that date.
Comments very much appreciated.

Eamon McNicholas
Posts: 73
Joined: Wed Aug 06, 2008 3:37 pm

Postby Eamon McNicholas » Mon May 08, 2006 8:31 am

If you should have been registered back in June 2002 then you urgently need to contact HMRC to get yourself registered right away.

As this is a late registration HMRC can assess for the tax due going back beyond the normal 3 years, right back to June 2002 (presuming they agree that is the right date for compulsory registration).

As a VAT assessment is for the net tax due that takes into account both inputs and outputs.

Going to them, before they catch you, openly and with your records gives you some credibility in trying to get them to agree the inputs claimable.

If with your late registration you also put in your calculation of net VAT due, and pay it, then that stops the interest clock and again adds to credibility.

That should also help with the penalty position.


Eamon McNicholas Esq.

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