How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4201
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

If a business is selling raw fish (zero rated) but the turnover

Customer Question

If a business is selling raw fish (zero rated) but the turnover is over the threshhold, does the business still has to register for VAT.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am keith, one of the experts on Just Answer, and pleased to be able to help you with your question. In a word yes! If a business turnover, the aggregate of zero, reduced and standard rated supplies, approaches or exceeds 82K [the Turnover Threshold] in any one year then that business must register for VAT. Indeed, in your case you should have registered as soon as you started trading as you make zero rated supplies thus have no output tax to pay, but any input tax can be recovered thus imp[roving your cash flow. I do hope that I have shed some light on your position.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Thanks Keith

While there is no output tax due , would there be a fine or penalty for late registration.

Expert:  bigduckontax replied 2 years ago.

There is a minimum penalty of GBP 50 and furthermore: If you registered

Then the penalty rate will be

Not more than 9 months late 5%

More than 9 months but not more than - 18 months late 10%

More than 18 months late. 15% . Full details are in VAT Notice 700/41.

However, an appeal against any penalty will almost certainly be successful as, in your trade in zero rated supplies, there is no loss of revenue for the Department as you have no output tax to pay.

Thank you for your support.