Hi
I am doing accounts (01.03.2013 to 31.03.2014) of one of my new client - Company .Turnover is around £90k for 13months trading which is above for vat registration threshold.
His business records show that his turnover will be less than de registration threshold of £79,000 in next 12 months.
Any expert opinion?
Thanks in advance
Replies (2)
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If you have evidence that this was only temporary, then you can write to them for an exception to be considered.
HM Revenue and Customs - VAT Registration Service
Deansgate
62-70 Tettenhall Road
Wolverhampton
WV1 4TZ
Timing...
As the test is based on a rolling 12 month period then it'll be important to know when they exceeded the threshold and if at that point they'd have been able to claim exception.
Assuming a fairly steady turnover then there shouldn't be much of a problem with this, but if the client exceeded in say month 5 and hasn't done anything till now, and it's only now or in retrospect that they can see the turnover dropping then HMRC may insist on a liable/no longer liable registration, and register them for a period of a few month.
As I say with steady turnover this is unlikely to be an issue, but it's probably worth mentioning.