VAT Rant

Jetlagged_2

Just realised we should have registered for VAT 3 months ago!!!! Our accountant told us that as long as the total for the year was less than £61k, we would be OK. I thought he meant financial year, he meant rolling 12 months. Aaaaaagh!!!

What makes it worse is that I had been diligently watching the turnover figure, but only since April.

Looking back quickly, we owe about £4k. We didn't charge our customers VAT, so will be out of pocket, even allowing for the stuff we can claim back. PLUS we have, according to the gov website, a fine of 5% to pay because of my ignorance.

Don't know where we will get the money from. This is such bad news. Will be seeing the accountant later this week.

Don't be a fool like me - check your turnover and look at the VAT website.

ukbill69

Get a new book keeper and accountant as they should have advised you. Im afraid if you muck your vat returns up then you will ave to pay up or go to prison.

motorguy

Jetlagged wrote:

Just realised we should have registered for VAT 3 months ago!!!! Our accountant told us that as long as the total for the year was less than £61k, we would be OK. I thought he meant financial year, he meant rolling 12 months. Aaaaaagh!!!

What makes it worse is that I had been diligently watching the turnover figure, but only since April.

Looking back quickly, we owe about £4k. We didn't charge our customers VAT, so will be out of pocket, even allowing for the stuff we can claim back. PLUS we have, according to the gov website, a fine of 5% to pay because of my ignorance.

Don't know where we will get the money from. This is such bad news. Will be seeing the accountant later this week.

Don't be a fool like me - check your turnover and look at the VAT website.

I'd speak to a good accountant, as he could really save you money now.

you werent VAT registered so you were right not to be charging VAT. you were not charging vat, but then you weren't claiming vat back on the goods you purchased, therefore effectively all you should be losing out on is the VAT on the profit.

For example, if you bought something for resale for £510+VAT, ie, for £600, and then sold it for £800, you made £200 profit. You didn't claim the vat back on the purchase as you couldnt

If you are rolling back your VAT registration to a point in time, then you will be able to claim back the vat on your purchase, ie it will cost you £510, and you sold it for £800 including VAT, ie £680.05+VAT, so you bought it for £510 and sold it for £680.

Thus instead of your profit being £200, you would have made £170.

Thus you're really just losing the vat on the profit, not the VAT on the selling price.