Late VAT Registration

Late VAT Registration

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I have a client (one of the last minute ones with accounting date over a year prior) who (despite my advice) failed to keep an eye on their turnover, and hit the VAT reg. threshold in September 2007. I'm about to let HMRC know, and I've told the client this fact, and that the VAT bill (calc. on Flat Rate basis, just so as to give an idea of amount) will be region of £10,500 + penalties and interest. How sympathetic could HMRC be, with regard to interest, penalies and repayment terms? This is an area I have little experience in, and I've advised my client to consider more specialised (albeit expensive) advice and assistance for dealing with this matter.
Ms Ermintrude

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By Malcolm McFarlin
26th Jan 2009 16:46

Late VAT registration
Hi

The penalties for late registration is 5% of the relevant VAT where HMRC are notified or become aware of failure no more than 9 months late; 10% over nine months but not more than 18 months; 15% in any other case. You would need to demonstrate a reasonable excuse for your client's conduct to avoid a penalty.

Happy to have a look at your case -contact Malcolm McFarlin 07590 047544 - www.mandrtaxadvisers.com

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