Late VAT Registration

[Bunny77]

Hello,

Could someone please help answer these questions for me:

1. I understand you're typically not able to reclaim VAT for goods which have already been consumed/sold. Does this still apply for late registration, or would you be able to claim those expenses for goods sold during this late period.

2. Must all pre-claims be submitted on your first required return. I am reading that it's required, but then also that you can claim up to 4 years, so confused which this is.

3. When backdating, must you give the exact date which turnover exceeded the £85,000 threshold, or does it begin at the 1st of that month.

4. When applying for VAT, there is an option to apply for "Exemption – because your taxable supplies are mostly zero-rated". Is there an exact margin which needs to be met, for example, would over 80% zero rated sales meet the criteria for exception.

5. In the event that an exemption is given, would this negate any owed VAT from the few months before, or shall I presume that the late penalty fee (5%) still applies and you would have to make calculations on VAT owed, despite them being nominal, or even HMRC owing you money instead.

Thanks in advance

 

[WaveJumper]

Register for VAT

How to register for VAT, change your details, cancel your registration, register for VAT in EU countries.

www.gov.uk

Charge, reclaim and record VAT

How to charge VAT, calculate VAT, VAT rates, reclaim VAT on business expenses, keep digital records.

www.gov.uk

 

[lesvatadvice]

assuming your 'late VAT registration' title indicates that you (or your client) has registered late for VAT, you should seek professional advice. That will enable you to quantify the arrears, maxmise input tax recovery, and minimise penalties.

 

[Bunny77]

assuming your 'late VAT registration' title indicates that you (or your client) has registered late for VAT, you should seek professional advice. That will enable you to quantify the arrears, maxmise input tax recovery, and minimise penalties.

Thanks both of you. I have read through this information but I was unable to find information pertaining to these exact scenarios. I also had further more complex questions so I believe you're correct, I will seek professional advice on the matter.

 

[UK Contractor Accountant]

4. When applying for VAT, there is an option to apply for "Exemption – because your taxable supplies are mostly zero-rated". Is there an exact margin which needs to be met, for example, would over 80% zero rated sales meet the criteria for exception.

they look to see if you are in an overall vat repayment position over a period of 12 months.

In other words, input tax claims will regularly exceed output tax payments.

 

[UK Contractor Accountant]

In the event that an exemption is given, would this negate any owed VAT from the few months before, or shall I presume that the late penalty fee (5%) still applies and you would have to make calculations on VAT owed, despite them being nominal, or even HMRC owing you money instead.

if exemption is granted there is no back vat due & penalties are not in play.

 

[Bunny77]

they look to see if you are in an overall vat repayment position over a period of 12 months.

In other words, input tax claims will regularly exceed output tax payments.

Thank you, I appreciate the information