Back Dating VAT Registration
I took on a new client a week before the SA deadline. I got everything in order and filed on time (partnership return and 2 x SA's for both partners). However on completion of the accounts it appears the VAT threshold was exceeded in April 2011 and the turnover is well in excess of the registration threshold thereafter.
I've checked the previous two years, and although there was the odd month which exceeded the threshold, this was the first time it was exceeded on a regular basis.
I have dealt with these before and are normally pretty simple. I've spoken with the customers of the partnership, they are all VAT registered and do not have a problem paying the VAT that should have been charged. I've prepared the registration forms for HMRC and we appear ready to go.
The part where any other experience would help....
The previous accountant was clearly incompetant. I would never normally make an assumption based on one client but this one really has no excuses.There are many issues relwith penalties and incorrect advice we are dealing with. The accountant (on the phone, not in writing) said that as the client was a service provider they were exempt from VAT registration - this is not the case. The client eventually got so concerned he attempted his own VAT registration which HMRC rejected (clear errors on the form) then they eventually approached us.
Will HMRC accept that their advice was fundementally incorrect and they did attempt VAT registration as a reason to avoid penalties? The registration is something we are doing, without HMRC demanding it (although they will be aware through the Partnership and CIS returns).
The ones I've dealt with before have had penalties, but they had no excuse for failing to register. In this case, I can understand some interest but the client didn't have any idea, and has taken actions to try to resolve the situation.
Any help or experience will be much appreciated, thanks!
- Problems viewing AWeb posts 137 5
- CIC Abbreviated Accounts 181 6
- Business trips - director and family 409 3
- Multiple for fee bank purchase 62 1
- Signed accounts for bank 653 15
- Family Partnership 265 8
- flat rate scheme 2,361 50
- Restriction of trading loss and overlap relief 156 2
- Rollover relief - No new asset purchased 322 5
- Can I prepare dormant accounts? 153 2
- How do you integrate prepaid expenses in to the cash conversion cycle? 71 2
- Does anyone have an old version of Sage for sale? 201 4
- What route into accountancy would you recommend? 845 12
- Business lending another business money (UK) 293 7
- Deferring dividends on paper 185 5
- VAT Query on new build 115 1
- How to format Co-operative Accounts 107 1
- P11D Car Value 267 6
- NOVA declaration 108 1
- Business valuation advice 710 18