Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚

VAT Issue

StephanieStephanie Settling In NicelyRegistered Posts: 20
Please can someone help me about a VAT Issue.
Someone came to me with his paperwork and wanted me to sort out his books. As I was going through I realised that he has been charging VAT to his customers without any right to do so (Not VAT Registered and above £77000). He has exceeded the limit and he charging VAT but not register with HMRC.
I have advice to get in touch HMRC to have that sorted.
Please is anyone being in that position before?
Please do share your experience or advice with me.
Thank you.


  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    He will need to register for VAT ASAP, and declare all the VAT he has collected, or pay it back to his customers.

    He can back-date his VAT registration, and indeed if over the threshold will need to.

    Penalties may be payable under the new regime which will depend on whether he was careless, dishonest, deliberate etc.

    If he gives you any whiff of not being honest, don't act for him.
  • StephanieStephanie Settling In Nicely Registered Posts: 20
    Thank you so much Monsoon for your reply.
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    I agree with Monsoon. Just make sure you give all the advice in writing....cover yourself!
  • StephanieStephanie Settling In Nicely Registered Posts: 20
    Thank you TC.
Sign In or Register to comment.