At the end of every month client does a report of his turnover for a rolling 12 month period, to make sure he stays under the VAT threshold.
He has a 5th April year end. When the sales figures were adjusted for last 25 days of April at the beginning of the year, and the first five days of April at the end of the year his turnover was £71500. This was due to high sales at the end of April in the beginning of the year, and high sales at the beginning of April at the end of the year.
The big question is, Should he register for VAT?
I feel not but it is in the strictest sense a 12 month period.
Bill
PS Good to be back online. Been tintenetless since the 5th June. Been getting withdrawal, and will need counselling for many months. Will probably have to join Shaun on a sweet FA meeting (that's Forums Anonymous)
I think Shauns currently got his head in his ACCA books so I don't envy him one bit at the mo.
I think your client should be ok. The thresholds increased to £73K this year and if he has reason to believe he won't hit the threshold in the current year I don't think he'd need to register.
Stuart
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Stuart
Birmingham City FC - Blues is my religion St Andrews is my church
I'm with Stuart and think that your client should be ok.
I've now done the exam and escaped the books. Answered everything on the paper (which is better than I thought I would do) but don't think that I wrote enough to scrape a pass. Oh well, if I didn't have this paper as my arch Nemesis what would I do with my Junes and Decembers!
Well, that's two of the three Amigo's back Bill. Still no sign of Rob though.... Stuart, consider yourself promoted. Grab yourself a poncho and sombraro.
Talk later,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Unlike previously I'm not letting anything slip this time between exams and am continueing to do exam questions until I get those darn results.
My problem is that I know exactly where to look in any book for information that I need but unfortunately they don't let you take the books into the exams... If only I had a bigger brain!
On the front cover of PQ this month it looks as though AAT have had serious problems at the latest sitting with systems crashing mid test . Passing AAT at this sitting has been likened to a lottery with some students spending five hours taking a three hour paper due to system glitches.
Wonder if the AAT are going to offer free resits to everyone that fails! (yer right, free exams. I think not).
Whilst I think that the new avatar would be suitable for Stuart I think that I would miss the mouse.... Not as much as I'm still missing Lucy Ewing of course!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Have to disaggree on Lucy Ewing, Betty for me any day, much classier lady. Lucy Ewing had bad taste in men, and an even worse taste in cars. TR7, probably the worst example of British car manufacturing. Now a TR6 would have been a different story
Hi, have just been looking at VAT registrations recently, and remembered reading something about businesses that temporarily go over the threshold, found this:
You're doing business in the UK, or intend to start
You may need to register for VAT, or you may be able to choose to register voluntarily, if you are doing any of the following kinds of business in the UK:
Supplying goods or services within the UK. If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £73,000, or you expect it to go over that figure in the next 30 days alone, you must register for VAT. However, if your turnover has gone over the registration threshold temporarily then you may be able to apply for exception from registration see the section later in this guide for more information.
If you've gone over the threshold for registration temporarily
You can apply for exception from registration if:
you have to register for VAT because the value of your taxable supplies in the previous 12 months has exceeded the registration threshold of £73,000 (including the value of supplies made by a VAT-registered business that you have taken over) you can demonstrate to HMRC that in the longer term you will only be trading below the de-registration threshold of £71,000
You can ask HMRC if they can make an exception, and allow you not to register for VAT, by filling in a VAT registration form, stating why you are applying for an exception.
If HMRC agrees to make an exception and allow you not to register this time, you must let them know of any relevant change in circumstances - for example, if your turnover goes over the threshold again.
If HMRC does not agree to make an exception, you will become registered for VAT from the day you should have been registered. You will need to account for VAT from that date.
Have to disaggree on Lucy Ewing, Betty for me any day, much classier lady. Lucy Ewing had bad taste in men, and an even worse taste in cars.
Only on this forum could a thread about the VAT Registration threshold turn into a debate about Lucy Ewing (a fictional character in a soap) and Betty Boop (a cartoon character).
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Never buy black socks from a normal shop. They shaft you every time.
Just one more service that Bill and Myself offer Peasie!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I had another good rummage round the HMR website, and found that the threshold limit changed on the 1st of April. For some reason I had it in my head that it changed in the 6th April (forgot that Inland Revenue and Customs & Excise as was, work from different dates)
In my scenario the client falls into the 73k range, so regardless he will be OK.
Now back to debating the merits of Betty Boop over Lucy Ewing
I still think that Amanda should have gone for Jessica Rabbit.
Love that line. I'm not bad I'm just drawn this way!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
. I'll be off shopping tomorrow to buy a poncho and sombraro!
)
