Who is responsible to de-register vat

myshell

If as a bookkeeper, doing a clients Vat, then an accountant files the accounts and tax return, who is therefore responsible in checking the vat limits for de-registration. Should the client hold some responsibilty for discussing possible alternatives?

I would appreciate any advice.

Thanks

System

You don't have to de-register if you drop below the limit. I'm registered but never actually get up to the threshold for mandatory registration and only did it to make a 'profit' under FRS

computerbar

myshell wrote: »

If as a bookkeeper, doing a clients Vat, then an accountant files the accounts and tax return, who is therefore responsible in checking the vat limits for de-registration. Should the client hold some responsibilty for discussing possible alternatives?

I would appreciate any advice.

Thanks

The Client is responsible for all their tax/vat affairs.
If they are getting a professional help, the client would expect these technical information from their agent (accountant) as they are pay them for their services.

Rolo_Tomasi

The client is ultimately responsible however the thresholds for VAT registration/deregistration are based on a rolling 12 month period. If the accountant only gets the information once a quarter and is presented with, what appears to be, accurate management figures, I don't think they would be expecting to advise on this issue. They would believe that the bookkeeper would flag up any issues with the client when presenting the management accounts to them.

Ultimately the advice an accountant gives is laid out in their letter of engagement so it is probably best to look at the terms of this.

NiceGuyEddie_2

It is the client's responsibility, and something they should be checking; as said above, VAT thresholds are on a rolling 12 monthly basis and as such the business owner (assuming we're talking unincorporated here) should be checking their position at the end of each month. An accountant preparing annual accounts may well consider VAT threshold limits and could raise this for discussion with the client, but you have to remember that they'll just be looking at the 12 months to the accounting year end and hence on a different basis.

I would have thought that the book-keeper would notice it, but ultimately the client must take responsibilty for their own affairs, particularly on an area that is easy to keep track of

zygurat789

This isn't a serious problem, unlike not registering when you should. It could, of course, be detrimental to the business if the customers are predominately not VAT registered, and, it also tells customers the size of the business.
There are other consequences such as the increase in costs due to the now non-reclaimable VAT input tax, and now the business ismaller and less complicated there is less need for a bookkeeper.