Tax update – AMG Financial Chartered Tax Advisers & Accountants have recently helped a local individual with regards to applying for VAT registration.
The individual located in Selsey, Chichester did not realise that the VAT threshold is worked out on a rolling twelve-month basis. This means that the turnover must be assessed each and every month for the previous 12 months and if turnover exceeds 83k then a business must register for VAT 30 days from the end of the month when turnover exceeds 83k.
The client was unaware that their turnover had exceeded the 83k threshold and, as a result, they were required to register for VAT. The individual was looking for an Accountant in Selsey and we were more than happy to help. We assessed the individual’s turnover for the prior 12 months free of charge and submitted all the relevant registration documents to HMRC.
Failure to comply with this could have resulted in ‘failure to notify’ penalties being issued. HMRC would have also insisted that any VAT due from the date of registration would have had to have been paid by the client, which could have resulted in thousands of pounds.
Please contact us today if you have concerns regarding VAT and we would be happy to help.