Vat turnover query

[Shanshan]

Hi All,

I've got a question regarding paying vat and the vat turnover.

I started trading as a business in June 08. I registered for Vat immediately as I thought the turnover would exceed £67k. By November, it wasnt going to be the case, so i deregistered at the end of November 08.

I intend to cease trading in Dec 09.

When reviewing the annual turnover, it appears between Dec 08 and Oct 09 I will be over the £67k threshold. Since this is the case, should I register for vat? Or should I not given i will cease trading in Dec 09.

The company i am currently servicing cannot claim vat back, and thus my rate would be renegotiated and I will receive a pay cut.

Thanks for any advice you can offer.

[sweetandsour]

I don't know the answer but I would strongly recommend that you phone the VAT people and ask them.

They are approachable and helpful, but you don't want to get on the wrong side of them.

[malvolio]

If you gross over £67k a year, you have to register for VAT, it is not an option. End of...

Talk to the VAT office - they are actually very helpful.

[Ardesco]

Hi All,

I've got a question regarding paying vat and the vat turnover.

I started trading as a business in June 08. I registered for Vat immediately as I thought the turnover would exceed £67k. By November, it wasnt going to be the case, so i deregistered at the end of November 08.

I intend to cease trading in Dec 09.

When reviewing the annual turnover, it appears between Dec 08 and Oct 09 I will be over the £67k threshold. Since this is the case, should I register for vat? Or should I not given i will cease trading in Dec 09.

The company i am currently servicing cannot claim vat back, and thus my rate would be renegotiated and I will receive a pay cut.

Thanks for any advice you can offer.

They don't have a turnover of over 67k, yet they are paying you enough to push you over the 67k barrier??

Sounds like something dodgy is going on.....

[Little'Old Me]

Hi All,

I've got a question regarding paying vat and the vat turnover.

I started trading as a business in June 08. I registered for Vat immediately as I thought the turnover would exceed £67k. By November, it wasnt going to be the case, so i deregistered at the end of November 08.

I intend to cease trading in Dec 09.

When reviewing the annual turnover, it appears between Dec 08 and Oct 09 I will be over the £67k threshold. Since this is the case, should I register for vat? Or should I not given i will cease trading in Dec 09.

The company i am currently servicing cannot claim vat back, and thus my rate would be renegotiated and I will receive a pay cut.

Thanks for any advice you can offer.

"If you've only gone over the threshold temporarily, and you can demonstrate to HMRC that in the longer term you will only be trading below the de-registration threshold of £66,000, you can apply for exception from registration. You can ask HMRC if they can make an exception, and allow you not to register for VAT, by filling in a VAT registration form, stating why you are applying for an exception".

However if you are definitely going to ceased trading in Dec 09 then I wouldn't worry.... as they will not want to register you just to de-register you etc....

[Little'Old Me]

They don't have a turnover of over 67k, yet they are paying you enough to push you over the 67k barrier??

Sounds like something dodgy is going on.....

Is only the latest of several contracts this year, so they are only part of the 67k+ t/o?

[Sockpuppet]

They don't have a turnover of over 67k, yet they are paying you enough to push you over the 67k barrier??

Sounds like something dodgy is going on.....

Is only the latest of several contracts this year, so they are only part of the 67k+ t/o?

Or they're a bank or other financial institution.

[TykeMerc]

Or they're a bank or other financial institution.

Or a charity?

[Shanshan]

Thanks for all the helpful responses.

It is one contract that from november 08 was going to be for a further 6 months working 30 hours per week thus I'd be under the vat threshold. So I deregistered for vat.

I am now not on a contract and am simply working the hours required, up to 45 or so, if this continues I will be over the threshold. The hours do vary quite a bit though.

This is temporary, from December I am planning on working for far less than £20k per year.

What do you think?

Thanks again

[centurian]

Or they're a bank or other financial institution.

Or NHS.

They can only claim back VAT on items that they could reasonably do in-house, so contractors fees are something they probably could claim back.