Vat registration exception

Vat registration exception

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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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By mrme89
27th Nov 2014 11:26

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

 

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By spidersong
27th Nov 2014 11:53

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.

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