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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have gone over the VAT threshold by a lot over the last 5

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I have gone over the VAT threshold by a lot over the last 5 month but haven't registered, what is the best thing to do as I have not collected vat on any jobs total turn over is 236,000.00 about 120,000.0 of that is materials, will I have to pay vat on turn over?


Thanks for your question, I am Sam and I am one of the UK tax experts here on Just Answer.

I am afraid you will need to register as a matter of urgency and sadly backdate to the date that you exceeded the thresholdm which will mean that VAT will be due on these jobs, and you will be expected to pay this over (less VAT suffered) to HMRC

So you have to add VAT onto your invoice - (so in essence as you probably have suffered VAT on the materials used it would be the difference so £116K x 20% of you are standard rated = £23200 (less VAT on fuel and other business expenses)

You can try and approach the engagers of the work to se if they would pay the VAT - but they are under no obligation to do so and if they themselves are bot VAT registered (so thats they can claim this back through their own VAT returns) then you may find many of them refuse.

Let me know if you have any follow up questions on the information I have provided.



Customer: replied 3 years ago.
Hi what would happen if I put my books in this year and and regester next month for future work

Hi Lee

Thanks for your response - I am not sure what you mean by " put my books in for this year" but as you then state and just register fror future work - I assume you mean that you ignore what has taken place.

I am sure you can appreciate, that I cannot advsie other than the correct way to proceed and thats to regsiter from the date that you exceeded the threshold - and failure to do so will result in penalties and interest charges if you fail to do so and HMRC have to chase you up for the correct date that regsitration should have applied from.

Its not worth the risk -

If you think you will find it difficult to pay whats owed in one lump sum, HMRC VAT will accept the offer of a short payment plan - but dont but yourself in an avoidance situation as it will prove even moe costly to you and your business.

I wish I could suggest something that would ease this position for you, and believe me, if there was anyway - then I would offer it up to you.

Let me know if I can be of any further assistance, but it would be appreciated if you could rate the level of service I have provided, as this ensures Just Answer credit me for my time.



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