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Post Info TOPIC: VAT Threshold
Julie


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VAT Threshold
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Hi All,

I recently posted a question about vat thresholds as I have a client who has gone over this.  The replies confirmed what I thought ie; they need to be registered.  But,  my problem is that although I have advised my client of this requirement, they have come back at me with the `well my accountant will make sure that I am under the threshold`.  They have even said that they will set up another `company` to offset the difference.

Now, my understanding is (this client is a sole trader), it does not matter how many `companies` they set up, the fact that they are a sole trader, everything effectively goes into the same pot and they cannot get away with this tactic !

Could somebody please advise me as to what I should do ? 

I have advised my client of the position, is it really up to me to force the point or should I simply leave it to their accountant to sort,  in other words if my client does not register despite my recommendation will this come back onto me at a later stage ?? 

Also, one final revelation is that my client does not `pay` his accountant, instead he provides a handman service in return !!

Julie

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Dustin57


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Hi Julie,

Unless your client registers for VAT, in my opinion this is a money laundering issue and should be reported to SOCA. When you've sent the report thats your job done under the legislation and you can carry on working for the client as normal.


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"People who are exceptionally good in business arent so because of what they know but because of their insatiable need to know more"
Julie


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Thanks Dustin,

Oh dear ....  do I tell this client about me reporting them to SOCA ?  I am very sure that if I do, then thats a client lost !

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Terri


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If it were my client, I would tell them that they have to register and that it is your legal duty to report this if they don't. If you lose the client then its a shame, but its better than getting into trouble for turning a blind eye to what they are doing. It is your responsibility to either get your client to register or report it and your client needs to understand that. Explain to them that if they do look for another bookkeeper, they will only do the same thing as you. Good luck, I hope that this is not a situation that I find myself in

Terri

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Terri Homyard AICB CB. Cert PM. Dip

A1 Bookkeeping & Payroll Services

www.a1-bookkeeping.co.uk
Wella


Expert

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Hi Julie

I'm of the same opinion as Dustin and Terri, that if you client is blatantly attempting to evade registering and paying VAT, then it should be reported. However do not let your client know because you will be committing an offence yourself described as Tipping Off  under the Money Laundering Regs.

It may be worth checking the HMRC website in case there might be a way of reporting it to them

Bill

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Julie


Senior Member

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Posts: 301
Date:
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Thanks for your replies.

In the light of my clients relationship with their accountant, surely their accountant is committing an offence by `turning a blind eye` ! 

With regards to `tipping off` it would be obvious who that would be - ie ;  me. 

I will certainly be re-reading my ICB MLR literature and checking out the HMRC website before I arrange to meet up with my client to discuss further. 

I shall keep you posted as to what happens next.

Julie

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