We have have this clients that normally brings his company financial recorda once in a year for us to prepare his final accounts. In one of the financial years he exceeded the £85K threshold for the compulsory registration for VAT. We brought this to his attention and he advised it was a one off because of contract boom.
In the year following, he exceeded this threshold again and by a larger margin. I sopke to HMRC and they advised that I register the client backwards to start from first day of the previous financial year.
The client fears that he may not be able to collect those VAT amounts if he re-invoiced his clients. Again he advises that the current year which ends in few weeks his T/O is less than the £85K band. What do we do at this point.
The VAT involved is over £45K. Would putting through the accounts trigger inquiry from the VAT team?
Can someone give a advise on the way forward.
hank you in anticipation of your kind suggestions..