Stung on vat??!!

[Chrispriced]

Hello,

I do hope someone can help me!!

I have just recently been informed from my accountant that I must now become VAT REG as I have passed the threshold. I am a sole trader in the flooring industry, I passed the current threshold by £28K from August 2014 but was unaware of this? So as it stands I currently owe and est £10K in VAT!! (oops)

I am in need of some help/advice/ideas how to deal with this. I was thinking that maybe I could ask my current contractors if they would be happy to make back dated payments just for the VAT on their invoices as most of them are VAT REG. Would that be a reasonable request?

Am open to Ideas,

[DaveB]

Hello,

I do hope someone can help me!!

I have just recently been informed from my accountant that I must now become VAT REG as I have passed the threshold. I am a sole trader in the flooring industry, I passed the current threshold by £28K from August 2014 but was unaware of this? So as it stands I currently owe and est £10K in VAT!! (oops)

I am in need of some help/advice/ideas how to deal with this. I was thinking that maybe I could ask my current contractors if they would be happy to make back dated payments just for the VAT on their invoices as most of them are VAT REG. Would that be a reasonable request?

Am open to Ideas,

How reasonable would you think it was if one of your customers came to you asking for money months after the job was done because they screwed up their VAT?

It could also open up a whole lot of trouble for all involved with HMRC.

It's your responsibility. You screwed up. Pay it. And get yourself an accountant. If you have turnover high enough to require VAT registration you can afford to pay one £100 a month to make sure this sort of thing doesn't happen.

[JB3000]

I am in need of some help/advice/ideas how to deal with this. I was thinking that maybe I could ask my current contractors if they would be happy to make back dated payments just for the VAT on their invoices as most of them are VAT REG. Would that be a reasonable request?

Good idea. As most of them are VAT registered they shouldn't mind. Expect a "no" from the ones that are not VAT registered.

[mudskipper]

Hello,

I do hope someone can help me!!

I have just recently been informed from my accountant that I must now become VAT REG as I have passed the threshold. I am a sole trader in the flooring industry, I passed the current threshold by £28K from August 2014 but was unaware of this? So as it stands I currently owe and est £10K in VAT!! (oops)

I am in need of some help/advice/ideas how to deal with this. I was thinking that maybe I could ask my current contractors if they would be happy to make back dated payments just for the VAT on their invoices as most of them are VAT REG. Would that be a reasonable request?

Am open to Ideas,

You cannot backdate VAT invoices before your registration date - my understanding is that you should have registered the first month after you exceeded the turnover limit - I think they will backdate your registration, so you will owe VAT on all invoices after that date.

If you passed the threshold by 28K, that implies a turnover of £110K - so the VAT element would be about 18.5K. If your clients are VAT registered, they may be happy for you to issue a VAT invoice.

Your accountant really should be advising here.

[nigelbb]

I could understand how you might not notice if you slipped over the threshold by a couple of thousand although if I were near the threshold I would be keeping a very close eye on it. However I cannot understand how you could not notice that you were £23K over as that's about an extra £2K per month or 25% increase in turnover.