In May 2018, sole trader came to me and want to setup a Limited company. I was under the impression my client was going to file tax return himself or get his accountant to file for 2017/18.
We setup a Limited company in July 2018 and company start trading under the limited company in August 2018. Registered for VAT in July 2018 under Limited company
Now, my client contact me recently saying penalties are mounting up and he would like me to file his tax return. Quoted a price then unfortunately it has taken me a while to put everything together due to missing receipts / costs and getting info from his previous accountant.
For 2017-18 he exceeded the VAT threshold in February 2018 and therefore should have registered for VAT April 2018. He was a sole trader for April 2018 - July 2018 and under rolling 12 months he would still exceeded the VAT threshold
He only had one client who was VAT registered under sole trader business and that has folded so there is no means of charging the client for VAT only.
Do you think we should write to HMRC and explain the situation with the month to month revenue figures. I also noticed that in 2016 turnover was little higher than the VAT threshold but in 2017 turnover dropped. Possibly he should have registered going back to 2016 but I think he maybe okay as that was probably a temporary blip..