Urgent Help - Accountants?

[ButterfliesWes]

Are there any accountants that have experience in dealing with business that should of registered for VAT,

I should have been registered in 2001-22 year and seeking advice. I am also in the process of a compliance check.

thanks
Wes

 

[Blood Lust]

Are there any accountants that have experience in dealing with business that should of registered for VAT,

I should have been registered in 2001-22 year and seeking advice. I am also in the process of a compliance check.

thanks
Wes

Turnover above £85k?

If so have you kept full accounts and records? If not its going to be a forensic reconstruction.

 

[JEREMY HAWKE]

I am a bit confused if your having a vat compliance check and your not registered?
Something must have sparked it @Blood Lust has mention the vat threshold
With limited info you must have been submitting accounts over 85 K previously

I hope you mean years 21 to 22 and not 21 years?

 

[DWS]

You need to check exactly when you breached the threshold, you mention 2001/2022 (as Jeremy says hope you mean 2021?) but this is irrelevant for VAT, you need to use the rolling 12 month period to find out exactly when the threshold was breached and then go from there.
When engaging an accountant make sure they are experienced in both dealing with VAT as well as HMRC in regards to compliance checks.

 

[WaveJumper]

Perhaps a prime example for others who think saving money by not engaging an accountant is a good idea. Hopefully not a 20 year old problem and can "simply" be ironed out under the 12 month rolling period, but something has sparked the interest of the VAT team.

Best of luck but do report back on the outcome so others may learn from your experience

 

[Lisa Thomas]

I can recommend some great accountants if you would like to dm me.

 

[ButterfliesWes]

Hi yes sorry 2001/22 financial year. My epos system is very poor and it was through the tax compliance check that i have undiscovered these findings. I know this is still my fault.

I have kept records anyway as i was always careful to keep everything but i one way this has helped me but obviously i am worried about penalties and worse.

 

[DWS]

So when did you actually breach the £85k threshold?

 

[ButterfliesWes]

The date it went over was 10th November 2021.

 

[DWS]

Ok, so you should have registered by 1st Jan 2022 and charged VAT from this date.
Did HMRC say why they had started a compliance check?
Did you submit accounts showing turnover above £85k?
I would suggest phoning some local accountants and then arranging a meeting to discuss these issues, most will offer an initial consultation free of charge.

 

[DontAsk]

What's does your regular accountant say? Oh...

If there's ever truth to the adage that engaging an accountant will save you more than they charge, this example may be it.

 

[Frank Wessely]

The date it went over was 10th November 2021.

Hi @ButterfliesWes

In what part of the country are you based? In order to provide a couple of recommendations for local accountants.

Thanks.

 

[John P Rogers]

I suggest you give Ray from Key Accounting a call on 07305 783296. Friendly guy who will talk it through with you and advise you.

 

[Ivel]

I can't imagine an accountant submitting year-end accounts or tax returns with turnover over £85k and not asking to see VAT returns.

If you didn’t register on time, then there’s a good chance that you didn’t charge VAT on your sales either. Unfortunately, HMRC will still expect you to pay your VAT bill and pay them the VAT that should have been charged at the time, even though you didn’t collect it from your customers. Also, you will get a penalty and most likely it will be 15% of what you owe.

If you are using accounting software, It might be easier to re-do the bookkeeping for the last 22 months and calculate the VAT. I hope you keep all your records and VAT invoices/receipts. If you can think of a reasonable excuse why you registered late HMRC might be willing to reduce the penalty, provided you were never late with other tax payments. Talk to a few accountants, get quotes and engage someone to deal with it. it will be costly to deal with it, but it is not the end of the world.