Gone over VAT threshold

[d000hg]

Think about it this way. You've gone over the threshold because you're bringing in more money than you expected. This is a good thing. Pay the tax honestly and congratulate yourself on being fortunate enough to be in the position that you have to!

[Mister Clark]

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.

Maybe it was random but I had a VAT inspection pretty much 6 months to the day after I had registered.

They were very friendly and competent, much more so than any other part of HMRC. I was happy to send them my invoices which they checked and actually told me that I was due a (small) refund. The turnaround was in the region of 3 days.

I had other experiences with the VAT man after I asked for guidance when working in Europe - all my questions were answered on the phone or they called me back within an hour if they didn't know the answer. All the guidance given was recorded on my account and they gave me a reference number should I need it in the event of an inspection.

The reason I tell you this is that if there was one part of HMRC I really would not want to tangle with it's the VAT man - they know what their business and I suspect they will take your skin off if you're knowingly messing around. Up to you though.

[Alan @ BroomeAffinity]

Bit of advice?
> Ditch your accountant
> Advise your agency you're registering for vat retrospectively and ask how far back they'd pay backdated VAT (it's no skin off their nose as they'll be able to reclaim it
> register from the agreed date and get on FRS.
> When your vat number comes in raise an invoice for the backdated vat only.
> receive vat at 20%, pay 13.5% (of gross) to HMRC
> ask accountant to justify why he didn't explain this fundamental tax planning opportunity which could have increased your profits by thousands .
> change your bloomin' user name

[Contreras]

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.

It's a shame you didn't get VAT registered sooner then.

Did your accountant also mention the Flat Rate Scheme?

[WordIsBond]

Get a new accountant. If he put that in writing, send it to his professional body. That advice could cost you dearly if followed.

[mudskipper]

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.

[SueEllen]

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

This kind of stuff flags you as worth being inspected.

[SueEllen]

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.

[john@UKCA]

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.

[diseasex]

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?

[gables]

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??

[Alan @ BroomeAffinity]

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 ;-)

[ajheywood]

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.

[northernladuk]

You tried asking your accountant?

[ajheywood]

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