Just finished doing a clients final accounts for 2016/17 and his turnover is just under the VAT registration limit, this is the first year I have done his accounts.
I am interested to know who is responsible for carrying out the VAT historic test, even though he is under the VAT threshold in the last 12 months of this tax year how can I be sure he has not exceeded the threshold during any 12 month period during this and before, as I have not had access to his previous monthly accounts?
Probably not explained it very well but hope you can see what I am trying to say and was just wondering how others would approach this and would I as his advisor now somehow be held responsible if he had hit the threshold
Any thoughts on this would be much appreciated
Cheers
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Hi Doug
If you were doing the bookkeeping on a regular basis I would say that you have an obligation to check it as you go. If you are only doing the year end accounts, or get the infomation so irregularly then it remains the clients responsibility, although I think there is a moral obligation to protect them from themselves and therefore to give them a prod to say how close it is. I would also advise them how they should review it (plus I would drop them a link to the appropriate part of the HMRC site).
HTH.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
