Retrospective VAT application

[SueEllen]

Not naughty - how were you meant to know what your turnover was going to be?

When you set up a business you are suppose to have plans including financial predictions of your turnover at least for the first year.

[TheFaQQer]

When you set up a business you are suppose to have plans including financial predictions of your turnover at least for the first year.

Yep - the plan was that I'd get one contract under the threshold. But I'm so good, I got two, and need to register for VAT now.

Dead easy to explain.

[r0bly0ns]

Can I ask why you would want to do this.

AFAIK if you didn't put "VAT Pending" on your invoices you can't do so, which means you'd have to stump up the VAT from your own pocket.

Talking from experience, this is not true, you are legaly obliged to bill for VAT from your registration start date, and your customers are legally obliged to pay it.

However it does make things a damn sight easier if you warn them up front if you are registering for VAT.

We didn't put anything about VAT on our first invoice, and when the VAT reg came through we had to issue a credit for the whole invoice, then reissue with VAT added. So it took us nearly 90 days to get our first invoice paid!