A theoretical question that has puzzled me for a while, but might affect a client soon. The VAT de-registration taxable turnover limit is £83K.
Let's say my client sells CDs online, and his sales are consistently £90K, so has to register and pay 1/6th over to HMRC, and so his net sales become £75K, and so he can de-register after a few quarters, but then his turnover obviously goes back upto £90K, and has to re-register a few quarters after that....and so on. Which is a bit crazy.
Or could he get an exception because by registering, he knows that his taxable turnover in the future will drop below the registration limit, which would in effect be a registration limit of £102K for retailers, so I presume very unlikely. How does this actually work in practice ?