Late vat registration for cleaner

Late vat registration for cleaner

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A bookkeeper has called me regarding a client of hers who exceeded the vat threshold in Feb 12 but failed to register.  The cleaner's clients consist of a letting agent (properties cleaned are an optician, the letting agents own office, and student digs including communal areas), and some domestic clients.

My research tells me the she must now register from 1 Apr 2012. There may be fines/penalties/interest/surcharges and the like.

Her turnover has plummeted dramatically in Nov 13 from around £8k p/m to £5k p/m due too health and subsequent downsizing. Can we apply as "Liable/No Longer Liable" for the periods 1 April 2012 - 30 Nov 13 and pay vat only for that period?  Also, can she join the FRS even though she is late?

Or does anyone have any better ideas that could save the day entirely?

TIA

Replies (7)

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By imbs
29th Apr 2014 14:18

£25k vat at stake here

so an expensive mistake

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By zebaa
29th Apr 2014 14:31

Apply for exception

Not a lot of information in the post, but if there are reasons why this was just a 'one off period' (poor word choice I know) you can apply for an exception. Ill health with a reduction in business could be a valid reason, but I think the period you describe is too long. Give it a go, what do you have to loose?

 

 

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By imbs
29th Apr 2014 14:38

health was good initially

Business was swimming along nicely and the poor health came along quite unexpectedly.  I'll give that a go but I cant see why they should agree. After all, the public purse is out of pocket by £25k due to her oversight. The oversight wasn't due to ill health, it was basically overlooked. The fact that she can deregister was due to ill health.  Will give it a go, thanks!

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RLI
By lionofludesch
29th Apr 2014 15:13

Charge Output tax

The letting agent may not mind being billed for the extra output tax if he's registered.

Every little helps !

And - yes - you can sign up for FRS.

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By Graham2
29th Apr 2014 17:23

A cleaner was making 8k a month? I think I'm in the wrong job!

Thanks (1)
Replying to Tax Dragon:
RLI
By lionofludesch
29th Apr 2014 17:29

Tough job

Graham2 wrote:

A cleaner was making 8k a month? I think I'm in the wrong job!

Can't be easy cleaning up after students, though.

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By imbs
29th Apr 2014 17:28

very messy people...

here in Northern Ireland!

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