Whilst preparing a client's accounts for y/e 31 March 2015 it showed his turnover exceeded the VAT Registration.
On deeper investigation, and after asking for figures year to date, he actually went over the 12-month rolling threshold in October 2014 and dropped below the deregistration limit in October 2015.
HMRC were notified and they have dealt with this as a Liable No Longer Liable case.
They have calculated Output Tax as 1/6 of turnover and input tax as 15% of output tax. I was only ever asked by them to supply monthly turnover figures.
Has anyone come across such an instance before as I am curious why HMRC have treated input tax in this way and not asked for his actual expenses.