Thanks in advance for any replies and advice! My first time posting. I've just worked out from my spreadsheets that the end of March 2020 I will of gone over the threshold of £85,000 by £900. I was registered for VAT last year but de-registered in November 2019 because my income went under the threshold. I really dont want to register again, the reason for going over was due to the coronavirus and a huge increase in sales from people panic buying, the chaos of everything also impacted invoices etc so I couldn't accuratly check my sales for the month. I have the following options...
Register for VAT and pay 20% on the amount i went over and then wait 1-2 months til my income drops and then de-register. Is this allowed?
Apply for an exception stating I won't go over in the next 12 months and explain the situation and hope they accept.
I'm leaning towards the second option but worried that they'll refuse and I'll have to either make a huge loss paying 20% going forward or lose income for1-2 months waiting until i drop below the threshold. Anyone able to offer any advice, would I have a good case to apply for an exception? Any other options?
Thanks very much