Exceeding VAT threshold temporarily

[courtg9000]

I didn't realise people still pay for the SJD spreadsheet!

It used to be available free on their website if you could be bothered to hunt for it and generate/give a mickey mouse email address for the validation form. Think this was in the Dolan days, not sure if it is the same now.

[northernladuk]

It used to be available free on their website if you could be bothered to hunt for it and generate/give a mickey mouse email address for the validation form. Think this was in the Dolan days, not sure if it is the same now.

Yep, and if you were there long enough nearly every accountant sent it back and forgot to password protect it at some point so plenty of un-locked down versions floating around. It was pretty spot on in it's day. It was a god send when I started using it. But that was 15 years ago. The thought of running your company by spreadsheet when FA is available seems ludicrous today.. but guess if it was good enough back then it should still be OK(ish) now.

Be interesting to see what it looks like now compared to them. Some bought it for bloody millions

[jamesbrown]

Yeah, TBF, I think everyone and their dog started our with the SJD spreadsheet, which was great.

Still, thank fook for FreeAgent and the like.

[d000hg]

Don't you track your company income so you don't make such errors in the first place? I know, you rely on your accountant to do that. Bad answer, it's your company,, not his.

Easy after the event, I think this is a little harsh. If you have always been under the threshold it is reasonable it's not on your radar - I know a self-employed handy-men who very nearly ran into the same thing when they took on a full-time helper and obviously their turnover increased as a result. Luckily they caught it, but if you got a new client at a higher rate or did a lot of 'overtime' work on an hour rate for a few months it could happen quite easily. The threshold is not very high.

Terrible assumption to make, particularly with HMRC and particularly to do with VAT. You knew you had an issue but you chose to ignore it when you didn't hear back? That's just asking for trouble. Sounds like a complete comedy of errors up to this point. The poor accounting and ignoring issues.

So they found the mistake and wrote to HMRC about it. When it comes to HMRC they generally only contact you when they want something (a bit like Linux) so "no news is good news" is BAU. Writing to HMRC is not ignoring the issue. I personally would have sat very nervously but if you inform HMRC and ask your accountant for advice, that's not a bad start.

[malvolio]

Easy after the event, I think this is a little harsh. If you have always been under the threshold it is reasonable it's not on your radar - I know a self-employed handy-men who very nearly ran into the same thing when they took on a full-time helper and obviously their turnover increased as a result. Luckily they caught it, but if you got a new client at a higher rate or did a lot of 'overtime' work on an hour rate for a few months it could happen quite easily. The threshold is not very high.

£85,000 last time I looked, so not trivial. I have always known what my rolling turnover is month on month (it was on the old SJD spreadsheet and it's on FA these days) but perhaps I'm just picky. Comes of being an ex-accountant I suppose.

Anyway there is precedent. That pillar of upright virtue and acute economic sense St Vince of Cable did exactly the same thing a few years ago, and didn't notice for some months after the payment deadline. HMRC let him off any penalties, saying it was clearly a simple mistake.

I wouldn't rely on that as a defence for anyone outside the hallowed circles of party leaders and ex-leaders though.

[vwdan]

Yeah, TBF, I think everyone and their dog started our with the SJD spreadsheet, which was great.

Still, thank fook for FreeAgent and the like.

Had to dig out some old info that was on my first ever SJD spreadsheet the other month - man, that was a trip down memory lane! It was great for it's day, but I bloody love FA!

[sifr]

For info to this thread for anyone else reading or interested, I was granted the VAT exception.

Nice letter stating circumstances accepted, exception granted and watch out on a rolling 12 month period as may need to register in future.

[northernladuk]

For info to this thread for anyone else reading or interested, I was granted the VAT exception.

Nice letter stating circumstances accepted, exception granted and watch out on a rolling 12 month period as may need to register in future.

Thanks for the feedback. Very useful to see a conclusion to posts.