VAT Query re registration

clearaccounting100clearaccounting100 Feels At HomePosts: 49Registered
Hi i have a client that wants to become VAT registered voluntarily. They are a Ltd company and have been trading since 01/02/08 they have submitted the accounts and tax return for the first 12 months of trading. I note that if you are volutarily registering then you can put a date up to 3yrs ago, but you are then liabile for the VAT u should have charged during that time. I also guess that you are able to claim VAT on purchases during that time also. Can some1 pls let me know how u do that? Do you include the figures in the first VAT Return? If i claim back the VAT on purchases and pay VAT on Salles then does this affect the company accounts & Tax return that have been submitted as the VAT would relate to that yr of account? Many many thanks :)


  • groundygroundy Trusted Regular Posts: 495Registered
    It would be usual to back date a voluntary registration unless the client is expected refunds. If you do back date then yes all transactions would go on the first return.

    With regards to the accounts I would leave the submitted as they are and amend for the VAT in the current accounts.
  • deanshepherddeanshepherd Font Of All Knowledge Posts: 1,809Registered
    Backdating is good if all the customers are also VAT registered AND willing to pay a VAT only invoice if one is raised.

    I do not believe HMRC are obliged to accept a backdated registration application without commercial justification so they may query an application to go back 3 years.
  • Julia CrouchJulia Crouch Feels At Home Posts: 68Registered
    With Dean on this, why do you want to back date the registration?

    You will still be able to claim the input VAT on assets purchased with the three year rule, if the assets are in use at the date of registration. Also services in the previous six months and stock in hand.

    Are you are trying to make a gain using the FRS, with the clients customers being VAT registered?
  • clearaccounting100clearaccounting100 Feels At Home Posts: 49Registered
    There are vitually no fixed assets in the business, i thought u could claim back the VAT on expenses if u backdated the VAT registration date? Does the claiming of VAT only apply to the fixed assets and services for the past 6 months? :D
  • Hazel ThomsonHazel Thomson New Member Posts: 11Registered
    I would just like to ask what is the benefit of voluntary VAT registration?
  • deanshepherddeanshepherd Font Of All Knowledge Posts: 1,809Registered
    You can reclaim VAT on your purchases.
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