Is there any Vat Registration tolerance

Is there any Vat Registration tolerance

Didn't find your answer?

During 2013/14 tax year client's turnover was £79,001, £1 more than the VAT registration limit. This figure will, of course, be shown on the personal SA tax return.

What sort of interest would or could HMRC show in connection with this tiny breach, or will they just turn a blind eye.

Replies (4)

Please login or register to join the discussion.

avatar
By cparker87
23rd Feb 2015 07:32

Need more info...
What was the rolling 12m turnover for each month from April 2014 onwards? Still in excess of the £81,000 threshold? Is it as of today? If so, I can't imagine any leniency being shown.

Thanks (1)
avatar
By ruthp
23rd Feb 2015 09:12

look forward

If the client is unlikely to ever go over the threshold again (ie. this is a one-off income event), there is a VAT registration exemption you can write to HMRC for.  If however they will always be close then look at the reg thresholds and reg if required.

Thanks (1)
By penelope pitstop
23rd Feb 2015 12:57

Client advised otherwise by an "expert"


The client in question was actually about £150 over the threshold for registration. I went to town on the client because he told me almost a year after the event that it had happened. After numerous warning letters from me explaining about the registration and deregistration limits and the rolling 12 month rule he then said one of his customers, an insolvency "expert", saw this happening all the time and because it was only just over the limit HMRC would not be interested. That was news to me. Surely, even if someone goes just £1 over the limit HMRC would be tipped off by the filed SA tax return turnover entry. As it turns out, he is saved by the deregistration rule for the following 12 months, but only just. I will therefore be applying for exemption from registration (his particular customer base could not afford VAT on his services).

Thanks (0)
RLI
By lionofludesch
23rd Feb 2015 13:04

The 11 month rule

Your client needs to have a look at the "11 month rule".

Add up sales for the last 11 months, take that away from the threshold.  That's the sales he can bill that month.  Once he's done that, tell him to put his feet up for the rest of the month.

Thanks (1)