Late VAT registration

claudialowe Registered Posts: 275 Dedicated contributor 🦉
I think that this is probably going to be more of a moan than a question :001_smile:

Client finally brings books to me yesterday, and a quick tot up reveals that he went over the VAT threshold in October 2007.

Phone and give him the good news, which he not thrilled about - and tries to tell me that his annual turnover will be less than the threshold, so I dutifully explain that it is a rolling 12 month test not annually when I do his accounts. He says fine, he will get someone else to do his accounts!!!

Phones me back later (probably having spoken to a bloke down the pub!!!!), and says that he thinks it is all terribly unfair :001_unsure: but that it is my fault for not having told him how to calculate the turnover level.....

Is it?

Last year his turnover was nowhere near registration levels - so I don't think so (but I would wouldn't I!), but it has got me a'thinking.

Having never had to do a retrospective application - anything that I should know, or think about? I know all about assets etc (which as he has a £15K van will help!).

Poxy clients - who would have 'em :ohmy::ohmy::ohmy:



  • K H
    K H Registered Posts: 81 Regular contributor ⭐
    A few pointers.

    if there are any assets on hand at registration acquired in the three years prior to registration, then the vat can be claimed back on the first return.

    if he is selling to vat registered traders then he can back date an invoice for 'vat only' ,they can pay him and claim back the vat and he will be no worse off.(i know,i've done this)

    if he makes a full disclosure then hmrc will certainly mitigate his penalties.(again, i've done this)

    if he is now under the limit and likely to be so for the forseeble future hmrc 'may'give a dispensation for him not to register, after all what is to be gained for him to register for a short period then deregister.

    i also can't see how it's your fault if he was well below the limit before, unless you have a part-time job reading crystal balls !

    best wishes

    K H
  • claudialowe
    claudialowe Registered Posts: 275 Dedicated contributor 🦉
    I have tried to explain about the VAT only invoices, and he thinks that his customers will not be impressed with this!

    I think that it is probably not a blip, unless he takes a 3 month holiday.

    I thought all my clients knew that my crystal ball broke many, many years ago - maybe he slipped through the net :thumbup1:

  • Guest
    Guest Registered Posts: 73 Regular contributor ⭐
    MLR? not just the client with an issue, especially if he leaves!
  • claudialowe
    claudialowe Registered Posts: 275 Dedicated contributor 🦉
    Hi there

    MLR not a problem - I know exactly what I have to do regarding that one!!!!

    That's the simple bit, it's the ins and outs of complying that I am trying to cover all bases with!

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