VAT query

[malvolio]

True, but he has been trying to get it sorted and has now reached a firm deadline. That's SJD's point, I think, that he's really run out of time to do it the "proper" way so should reach a clean settlement and save everyone a lot of hassle.

[tim123]

You must have very different VAT people at your VAT office, my experience with them suggests petty rather than pragmatic, so much so that I now change my ltd company every 6 months rather than go over the 64k threshold

This ought not to work, because there is a quarterly limit as well. If you are billing enough to go over the annual limit in a year, you will also go over the quarterly limit in a quarter and hench be *required* to register then.

tim

[XTC]

And yes went over the £65K limit.

[XTC]

Hang on, am I missing something here? If I am, forgive me. But....

The OP says he's not registered for VAT.

Then he says he thinks his VAT liability is around £10K.

He can only have a VAT liability, surely, if he's added a VAT element to his invoices and received that on top of his normal fee?

If he's added that VAT element then it's fraud because he's not registered for VAT.

If he's NOT done that, then how can he owe £10K in VAT which he's not charged out?

A confused Miss Marple.....

Yeah I'm sorry I didn't explain it very well as I don't really understand it myself! I wasn't claiming VAT, but my accountant who did my end of year stuff put down a £10K VAT liability. I basically registered for VAT over a year ago, 3 months after that I got a letter asking various questions regarding my VAT application. I replied. 2 months later I moved & informed HMRC by letter of new address. Months later still nothing, chased it up, finally got hold of the right person, they still had old address, hadn't received my letter blah blah. Got them to send out original letter with queries, answered it immediately and that was in feb. Still not registered. Finally got a letter back from them last week asking about why company was registered to a residential address. Phoned up accountant and she said don't register as I'm going back to Oz in June. TBH it's been farcical.

[malvolio]

If he has gone over the turnover limit (whatever that is now - £65K??) he has to apply VAT, registered or not. The OP has tried to register but it hasn't happened and is looking for a legally acceptable way to short cut the process.

[miss marple]

Hang on, am I missing something here? If I am, forgive me. But....

The OP says he's not registered for VAT.

Then he says he thinks his VAT liability is around £10K.

He can only have a VAT liability, surely, if he's added a VAT element to his invoices and received that on top of his normal fee?

If he's added that VAT element then it's fraud because he's not registered for VAT.

If he's NOT done that, then how can he owe £10K in VAT which he's not charged out?

A confused Miss Marple.....

[malvolio]

Yeah, well, no helping some people, is there.

XTC - you must know what you believe your VAT liabillity to be now (even if you don't, SJD will) so that's what you owe. You can make an intelligent guess at what you are likely to owe between now and the end of the company. Add the two and I doubt the Vatman will argue too loudly.

[Troll]

Unlike the taxman, the VAT people are pragmatic and sensible. If you have gone over the turnover limit for VAT you have to pay it whether you are registered or not. So talk to the VAT helpline, explain the circumstances and they will almost certainly agree to a one-off payment. What you can't do is not pay them anything - they carry a big (and very long) stick.

You must have very different VAT people at your VAT office, my experience with them suggests petty rather than pragmatic, so much so that I now change my ltd company every 6 months rather than go over the 64k threshold

[XTC]

Unlike the taxman, the VAT people are pragmatic and sensible. If you have gone over the turnover limit for VAT you have to pay it whether you are registered or not. So talk to the VAT helpline, explain the circumstances and they will almost certainly agree to a one-off payment. What you can't do is not pay them anything - they carry a big (and very long) stick.

Cool thanks. When you say they agree to a one-off payment, how do they calculate it? I mean I owe 10K do pay this or do we haggle?

[malvolio]

Unlike the taxman, the VAT people are pragmatic and sensible. If you have gone over the turnover limit for VAT you have to pay it whether you are registered or not. So talk to the VAT helpline, explain the circumstances and they will almost certainly agree to a one-off payment. What you can't do is not pay them anything - they carry a big (and very long) stick.

[XTC]

Ok firstly I know f* all about accounting and so forgive me for sounding like a tool. To cut a very long story short.. I'm heading back to Oz in 3 months, my ltd company is not registered for VAT, this has taken months to get registered and is still not, the HMRC have been so bureaucratic. Got a call from my accountant (SJD) and she said that not to bother registering after all as by the time I register it will be time to de-register. She said speak to HMRC and 'make a deal'? What now? They're not a car dealership. What does she mean make a deal. I think i owe £10K in VAT.