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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3823
Experience:  FCCA FCMA CGMA ACIS
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There, my partner and I have used a book keeper to do our

Customer Question

Hi there, my partner and I have used a book keeper to do our taxes since may 2013. In this time we have noted that we may have gone over the VAT freshhold and have not registered approx. 1 yr ago. How can we put this right?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. If your aggregated turnover of standard, reduced or zero rated supplies has exceeded the Turnover limit of 82K in any one year you must register for the tax. Here is the Gov UK advice on late registration: 'Late registration You must register within 30 days of your business turnover exceeding the threshold. If you register late, you must pay what you owe from when you should have registered.' This could be a quite expensive exercise having to meet 20% of your sales for a year not to mention possible penalties. If you service commercial customers you could issue revised invoices. It would cost them nothing in the longer term as any additional payment ie the VAT, would be for them input tax which can be reclaimed on their quarterly returns. Non registered customers may well jib! HMRC could raise a penalty of 10% of the tax overdue 9 months and 5% for less. If you have breached the limit register immediately and make adjustments charging the outstanding tax on your first quarterly return. I am so sorry to gave to rain on your parade.
Expert:  bigduckontax replied 1 year ago.
I should have mentioned that late registration is covered in VAT Notice 700/41 which you can find at: https://www.gov.uk/government/publications/vat-notice-70041-late-registration-penalty/vat-notice-70041-late-registration-penalty

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