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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I'm self employed. Believed i 'd be over th/hold, but I realise

Resolved Question:

I'm self employed. Believed i 'd be over th/hold, but I realise now, at yr/end i am not and mistakenly though i could re-activate vat no. used by re-registering and pay vat collected. The input vat has been re-claimed. Is it best to re-issue nil vat to Co I did work for and charged vat or can should I contact HMRC explain my mistake register and pay. Genuine mistake, I thought book-keeper said I could re-register. Amount involved approx. £3k.
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question...You thought you had exceeded the VAT threshold for registration...If you have issued VAT invoices based on your understanding and reclaimed VAT input, my advice would be to register for VAT and backdate it to when you issued VATable invoices.Sooner of later you would reach the threshold and then you would be required to register. I hope this ishelpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
I have not reclaimed vat. I provided a service to a Co and sent them Vat invoices. I did not re-claim vat, the Co has against the invoice I sent them. I realised my mistake only recently when I contacted my book-keeper and explained that I am not over the thresh-hold on my sales for the year. The book-keeper said I'd made a mistake, that my Vat no was de-registered earlier at end of 2014, and if Co I sent vat invoices to had re-claimed vat and treated my services as a disbursement then I should do revised invoices and give them back vat and they'll do adjustment.
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply and clarification.It is the customer would have claimed back VAT input on your sales invoice due to your error and you are unlikely to hit the VAT threshold, then you are correct in re-issuing the invoice to your customer without the VAT.You are advised to issue the customer a Credit note against the original invoice showing ex VAT and VAT amounts and then issuing a fresh invoice without the VAT.VAT claimed by your customer would have to be repaid to VAT office when they do their next VAT return as they would be processing your credit note.Any overpayment of original invoice would be repaid to the customer.I hope this is helpful and answers your question.
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Customer: replied 1 year ago.
Thank you for your response. I am going to proceed to do this.

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