VAT

VAT

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Hi

I have a client that operates a fast food take away that has takings of at least £1500 per week - therefore should they register straight away given that 52 weeks x £1500 per week is in excess of the VAT threshold or should they wait untill they reach the £73,000 in the previous 12 month period.

I am confused!!!

Regards

a_m

Replies (5)

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By ShirleyM
29th Nov 2011 10:12

Wait

It is possible that the VAT threshhold will not be reached, and they would be disadvantaged by registering earlier.

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By thisistibi
29th Nov 2011 10:34

But

Did they recently buy the business off somebody else?  As that could change the answer.

But otherwise I concur.

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By a_m
29th Nov 2011 11:45

Established business....

The business has been established for a long time and was registered for VAT about 10 years ago.

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Replying to Justin Bryant:
Quack
By Constantly Confused
30th Nov 2011 12:21

Established

a_m wrote:

The business has been established for a long time and was registered for VAT about 10 years ago.

 

Did business die down in the interim then and it was deregistered?

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By Mouse007
29th Nov 2011 19:54

Do some calculations

Would it be worth them closing for a few weeks each year to avoid going over the registration threshold?

A 20% hike in prices, or a 17% fall in income, or some mix between the two could cost more than a couple of extra weeks holiday.

A great one for some proactive maths.

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