VAT advice - must register if turnover £61k+

longforgotten

If your turnover is nearing the annual turnover limit , say £55k,please discuss it with your accountant. There may well be things that can be done to keep your turnover under the VAT limit. Some advice can save you a lot of bother in the future.

Once your turnover is over the limit you have missed your moment, your chance may have gone.

JasonLVC

Very sound advice Longforgotton.

I'm guessing from this post your charity has come close to the edge of the registration limit - of course, keeping your income below the limit is good in one way, but in another, you're restriciting the possibility of generating more income for the cause thus limiting the true potential of the charity.

Charities should always consider the issues of VAT and irrecoverable VAT as often as they consider other financial matters as it can make a big difference to their fortunes.

I'm currently advising a charity that has obtained lottery funding for a new building to the sum of £500k but with some clever planning have worked it so that they aren't charged VAT and don't need to register for VAT.

longforgotten

I think its charities and non profit making concerns that should be most aware about this. Small businesses should already know as to whether their turnover would be considered standard rate, zero rate or exempt. If they don't know to say its very sad is an understatement, I'd go as far as to question as to whether they should be in business at all

It's the people who band together as a social interest or to raise money for hospitals etc that I am worried about. They tend to forget that the VAT man will still be on their back if their turnover reaches a certain level. The VAT man will not care that you are raising the money to give away or not, he will be after you if the turnover reaches a certain level regardless !