Hi All, hope everyone is well and business is booming!
I have a question regarding VAT registration. One of my clients de-registered for VAT last year (date of de-registration was 1 August, last VAT return was to 31 July 2014) All VAT up until the date of de-registration has been accounted for. She downsized her business and moved to smaller premises. I am now keeping an eye on her turnover level to make sure she doesn't go over the registration threshold. My question is, calculating turnover to the end of April this year, should I be taking the 12 month period from 1 May 2014 or only from 31 July 2014 when she de-registered?
In the same way that you monitored a moving total in order to de-register last July, you continue to keep a cumulative running turnover to know if or when she needs to re-register for VAT.
In other words simply following the Vat 700/1 3.3 tests.
Hope that helps, Tim
-- Edited by Don Tax on Thursday 7th of May 2015 03:03:48 PM
Yes, sure Pauline. It's a continuing business and there is no separate cut off point at de-registration.
If she's getting close to the threshold again then i've known them to be flexible if you speak to them. One time, i was told that if they stay above for two full quarters then they'd have to re-register.
Ah right, thanks Tim.....just got to work it out then. Quite a few of her sales are exempt (C & G courses and exam fees) so I think she should be ok anyway.
