Registering For Vat

[KMCARDELL]

Hi, any help very much appreciated as it's slowly driving me insane!:|

My small handmade gift company has unfortunately exceeded the VAT threshold. Having now checked I realise we went over in July this year. So I plan to register asap & also apply for Flat rate scheme at the same time, as most of our purchases are from non vat registered individuals. We qualify for 7.5% flate rate.I understand the vat I have to pay will be back dated etc. even for the sales where I didn't charge vat.

My questions are... will the flat rate also be back dated?

If I went over the threshold in July, is that when I will need to pay the vat from? Or will it be from August ?

How soon will they invoice me for the VAT I owe?

Also the first year falte rate additional 1% discount, will taht apply & if so when from, July or now?

We have been running almost 4 years. The business was never expected to exceed the limits, and this was my first year exceeding my personal tax allowance! So it's all been very fast.

Thank you in advance for any help offered.

 

[IANL]

Hi There and Welcome to the forum

You will find a great deal of info here.

http://www.hmrc.gov.uk/vat/start/register/register-late.htm

In Summary

Reminder: when you must register for VAT
You must register for VAT if your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £73,000, or you expect it to go over that figure in the next 30 days alone. There are also various other circumstances where you must register for VAT.

In July was your previous 12 months trading exceeding the threshold?

 

[KMCARDELL]

Hi,
yes July was when the rolling 12 months went over the threshold
Thank you

 

[David Griffiths]

If you were over the threshold at the end of July (but not end June) then you will be registered from 1 September.

HMRC will normally allow flat rate to take effect from the date of registration, and yes you will be entitled to the extra 1% which applies in the first year of registration

They will set a VAT return period when you register. The first one will cover the whole period since the actual date of registration and the VAT is due basically one month later (an extra 7 days allowed for electronic payment, which is actually compulsory, but it must be in their account by the due date) So you might find that the first period runs 1 Sept to 28 February, payable by end March.

 

[KMCARDELL]

Hi,

Thank you so much, you've really put my mind at rest & made it all very clear. That was my best case scenario, that I was hoping for.

Happy new year

 

[Jaydee]

They will set a VAT come back interval when you sign-up. The first one will deal with the whole interval since the real time frame of signing up and the VAT is due generally one Calendar month later, So you may discover that the first interval operates 1 May to 28 March, due by end Goal.

How funny - David has a stalker that turns his perfectly adequate posting into pigeon-English, gets some material facts wrong, but manages so drop a link in as no doubt the UKBF community will rush there for further useful insights

 

[David Griffiths]

How funny - David has a stalker that turns his perfectly adequate posting into pigeon-English, gets some material facts wrong, but manages so drop a link in as no doubt the UKBF community will rush there for further useful insights

I think that he was distracted by the football before he finished his post!