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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Wait
It is possible that the VAT threshhold will not be reached, and they would be disadvantaged by registering earlier.
But
Did they recently buy the business off somebody else? As that could change the answer.
But otherwise I concur.
Established
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?
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.