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    Post Gone over VAT threshold

    Hi all,

    I'm looking for some advice, I've been on a self-billing contract for a while and not been keeping a close eye on my company turnover and I think now that I have gone over the VAT threshold sometime in Jan/Feb 2016. I'm looking at the HMRC website to register for VAT and it is asks if I believe I've already gone over the threshold which I'm obviously going to have to put yes too but I'm wondering what the consequences of this are going to be?

    Am I going to have to pay VAT from the time I went over the threshold even though I haven't charged my client VAT on those invoices?

    If yes, its also my understanding you cant start charging VAT on your new invoices until you receive your VAT registration number, if that's the case then the invoices I issue in the next few weeks are going to be without VAT also and I'll still have to pay VAT to HMRC?

    Thanks in advance

    Andy

  2. #2

    My post count is Majestic

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    You tried asking your accountant?
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  3. #3

    Nervous Newbie


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    I've just got off the phone with him. He said to just register and not put down that you've already gone over and start putting VAT on my invoices from when I get the VAT registration number. He said its very unlikely that a small company like mine would have a VAT inspection and even if it did unlikely they would pick up on it.

    It doesn't sound very ethical to me but if it stops me having to give more tax to HMRC then I guess that's a good thing.

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    Contractor Among Contractors


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    Quote Originally Posted by ajheywood View Post
    It doesn't sound very ethical to me but if it stops me having to give more tax to HMRC then I guess that's a good thing.
    Not registering at all would mean even less tax than that. Doesn't make it right. I'd suggest running the risk of getting on the wrong side of the vat office (who are like HMRC's gestapo squad) is a risky strategy for your accountant to recommend.

    Not as risky as using your real name on an open forum and discussing not paying all your tax though ;-)

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    More time posting than coding

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    Quote Originally Posted by ajheywood View Post
    I've just got off the phone with him. He said to just register and not put down that you've already gone over and start putting VAT on my invoices from when I get the VAT registration number. He said its very unlikely that a small company like mine would have a VAT inspection and even if it did unlikely they would pick up on it.

    It doesn't sound very ethical to me but if it stops me having to give more tax to HMRC then I guess that's a good thing.
    I had a VAT inspection 4 years after starting contracting, that was in 1997. At the time it seemed to be a case of when not if, maybe things have changed??

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    Contractor Among Contractors

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    Quote Originally Posted by gables View Post
    I had a VAT inspection 4 years after starting contracting, that was in 1997. At the time it seemed to be a case of when not if, maybe things have changed??
    And how that inspection looked like?

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    Still gathering requirements...


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    Default Vat register

    Are your customers vat registered?

    If so you can just issue them with a vat only invoices to cover the vat due on the invoices from your effective date of vat registration once your vat number had been issued.

    Ask your customer if they are OK with this first.

    Would not advise you to lie on the vat registration application form.

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    I live on CUK

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    Quote Originally Posted by gables View Post
    I had a VAT inspection 4 years after starting contracting, that was in 1997. At the time it seemed to be a case of when not if, maybe things have changed??
    They have less VAT inspectors and also target industries or people where people have a habit of being dishonest.
    "You’re just a bad memory who doesn’t know when to go away" JR

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    I live on CUK

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    Quote Originally Posted by UK Contractor Accountant View Post

    Would not advise you to lie on the vat registration application form.
    This kind of stuff flags you as worth being inspected.
    "You’re just a bad memory who doesn’t know when to go away" JR

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    TPAFKAk2p2

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    Quote Originally Posted by UK Contractor Accountant View Post
    Are your customers vat registered?

    If so you can just issue them with a vat only invoices to cover the vat due on the invoices from your effective date of vat registration once your vat number had been issued.

    Ask your customer if they are OK with this first.

    Would not advise you to lie on the vat registration application form.
    This. Advise your clients that your VAT registration is pending, and you will issue a VAT invoice once it comes through.

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