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 TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

We have been trading 5 months and our gross turnover is

Customer Question

Hi
We have been trading for nearly 5 months and our gross turnover is £78000 to today. We will go over the £83000 limit by the end of this month if we continue trading. Can we close for a day or 2 so as we do not reach the limit and therefore gain another month from registering for VAT. This would mean that we do not reach the limit until the first day of August and could then register from 1/10/16?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi.

If you look at 2 here, you will read that by closing your business for part of the week may help to keep your turnover down. However, that advice is really aimed at a business which will has the option to only be open for a part week on a permanent basis.

The rules for registration are here. The key words for me are "expecting" or "knowing" that you will go over the threshold in the next 30 days. You appear to know that you will do that in the next 4 days. I have heard of small shops closing for a week or so to to avoid the threshold but I would say that HMRC will take a dim view if they found out what the real reason was as opposed to a business owner's claim that the closure was due to illness or holiday. However, unless HMRC carry out a VAT audit at some point after you have registered and spot the apparent closure of the business for a few days very close to the threshold, it may go unnoticed. There are penalties for not registering when you should have.

I hope this helps but let me know if you have any further questions.