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VAT realms!
ademoore
Well-KnownRegistered Posts: 146
I have a client just finished first year accounts.
He had some business income a few weeks prior to Ltd company being set up, around £6.5k worth. Was intending to add this, along with pre-trading expenses, into the first year accounts.
His first 12 months trading came in at £65k, which is fine for VAT thresholds, however, when I add the £6.5k prior income, as intending, this then takes them over the limit for VAT and since a one-off situation, I have told the client we should apply for an exception for registration from VAT. The second year will not come above £65k.
There's a couple of options -
1. Apply for the exception and hope it is granted or,
2. Add the £6.5k and if called for vat registration, then be honest and say the £6.5k was outside the 12months zone, and added in to cover all income (about 13 months)
What would you guys do?
He had some business income a few weeks prior to Ltd company being set up, around £6.5k worth. Was intending to add this, along with pre-trading expenses, into the first year accounts.
His first 12 months trading came in at £65k, which is fine for VAT thresholds, however, when I add the £6.5k prior income, as intending, this then takes them over the limit for VAT and since a one-off situation, I have told the client we should apply for an exception for registration from VAT. The second year will not come above £65k.
There's a couple of options -
1. Apply for the exception and hope it is granted or,
2. Add the £6.5k and if called for vat registration, then be honest and say the £6.5k was outside the 12months zone, and added in to cover all income (about 13 months)
What would you guys do?
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