Application for VAT exception - rejected

Dear All

It feels like a long time since I have been to the AW site. I have a query and any comments would be greatly appreciated.

I have a client who breached the VAT threshold at the end of 2011. Since the breach was due to work on a contract that ended in March 2012 I (his agent) wrote to HMRC on his behalf requesting that they consider VAT registration exception. After various questions from HMRC this request has beeb rejected requested VAT registration to commence in June 2012. In the meantime (and unrelated to their VAT postion) this client is due to incorporate their sole trade on 1st June 2012. What is the situation regarding their VAT position and what do I need to do next with regard to HMRC? Hopefully someone our there has had a client in a similar situation?

Best wishes

Loner