VAT is not my forte, so hopefully someone with more experience can tell me if I’m barking up the wrong tree.
I will have a client (unincorporated association or Ltd company – vehicle hasn’t been decided yet) who will be running a one off event – providing a testimonial match for a player.
In total, the venture will last about 3 months from start to finish. An independent committee will organise the match and receive payments for the tickets. The match takes place in September, and between now and then there will be tickets sold (although the match hasn’t been announced yet, so no ticket sales yet – pay at the gate may be quite high here).
Turnover for the match is expected to be around £150k, so above the VAT threshold.
Chances are the VAT threshold will be breached within a 30 day period, and so immediate registration will apply.
I’m aware that you can apply to HMRC for a registration exception if your taxable turnover goes over the threshold temporarily, and you have evidence to show you believe taxable turnover won’t go over the de-registration threshold of £83,000 in the next 12 months.
Given tickets aren’t available for sale yet, it could very well be that all sales go through in the 30 days leading up to the match – in fact most might actually go through on matchday. So, after matchday, no further turnover will be received, but there will be a bit of admin to complete – payment to the player, filing of any necessary returns, distribution of remaining funds etc. All finished within say a month of the match.
Given that we can demonstrate that there will be no taxable turnover in the next 12 months, in your opinion, is there any chance of HMRC granting an exception in this case?
I personally doubt we can - for one how can it temporarily go over the threshold, if it exceeds it with its only event - but thought it worth getting other opinions.