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)
Please login or register to join the discussion.
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?
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.
Tough job
A cleaner was making 8k a month? I think I'm in the wrong job!
Can't be easy cleaning up after students, though.