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Thank you, ***** ***** not registered and may have been in this position some while, our accountants advice apparently after seeking clarification from Custom and Excise was that we were an exempt service given what we did and who we provided the services to. I have always been nervous at this position. Does the fact that we supply only government agencies make any difference?
if we do have to register are they likely to go back in time?
No, the fact you supply the Government is irrelevant.
I did look for you to see if your services were exempt, but could find no indication that they were. Education and training usually are, but if you trawl through you will find organisations offering training in subjects similar to yours at a price plus VAT. However, if you discover that some of your outputs are exempt please remember that the annual turnover rule of 81K applies only to standard, reduced and zero rates supplies; exempt outputs do not come into the registration equation at all. I would be inclined to run the question across your local HMRC office.
Here is the HMRC advice on late registration:
'Late registration If you register late, you’ll still need to pay all the VAT due from the time you should have registered. HM Revenue and Customs (HMRC) may also charge you a penalty, depending on how much you owe and how late your registration was.'
Always bear in mind Benjamin Franklin's dictum that in life there are but two certainties, death and taxes!
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We are registered with Ofsted so I think that means we come under a welfare organisation, it specifically mentions child protection. We are therefore a government regulated body. I am hoping that makes a difference.