Applying for VAT exemption
farfromexpert
Posts: 2 Newbie
Hi,
my husbands business has had 2 higher value orders in last 4 months, the latest one we are due to fulfill in next 2 weeks will put our Ltd company sales over the 82K vat threshold, (89k)
We deal mainly with personal customers not businesses and it's never likely to happen again that our 2 business customers will need anything new to the value they have (24k each) in the next 5 years let alone 12 months.
I have searched the gov website and see we can apply for exemption but what I cant find apart from an address (Grimsby) to send a letter to is any information on what I need to send them, in what format,
We have traded for 6 years, I have our sales figures and previous high invoice amounts and also the bus customers spend with us prior to this, do I just type it up, post and hope it makes sense
I thought there might be a form but cant find it, I really dont want exemption rejected just through lack of information that I probably have but dont know that they want it
sorry if it's out there and I've failed to spot it but any advice would be appreciated
my husbands business has had 2 higher value orders in last 4 months, the latest one we are due to fulfill in next 2 weeks will put our Ltd company sales over the 82K vat threshold, (89k)
We deal mainly with personal customers not businesses and it's never likely to happen again that our 2 business customers will need anything new to the value they have (24k each) in the next 5 years let alone 12 months.
I have searched the gov website and see we can apply for exemption but what I cant find apart from an address (Grimsby) to send a letter to is any information on what I need to send them, in what format,
We have traded for 6 years, I have our sales figures and previous high invoice amounts and also the bus customers spend with us prior to this, do I just type it up, post and hope it makes sense
I thought there might be a form but cant find it, I really dont want exemption rejected just through lack of information that I probably have but dont know that they want it
sorry if it's out there and I've failed to spot it but any advice would be appreciated
0
Comments
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There isn't a form for exemption from registration which is why you can't find one.
The law states you MUST notify HMRC when you exceed the VAT registration threshold and you notify HMRC by way of a VAT registration form (VAT1).
So to claim VAT exemption, you first complete a VAT registration application form (VAT1) and then provide a covering letter explaining that you want to use the exemption. In your letter you just explain that your turnover is always under the threshold but a "one0of" job has piushed you slightly over and that you will be below the VAT threshold thereafter.
If you don't want to complete a VAT 1, the alternative route is to send a covering letter as above, explaining why you want exemption, although I suspect HMRC will write back saying okay, but please complete a VAT 1 form.
The alternative is to look at when you raise invoices, the £82k threshold is based on rolling turnover (Nov14-Nov15), so can you stall issuing of invoices for a month.Anger ruins joy, it steals the goodness of my mind. Forces me to say terrible things. Overcoming anger brings peace of mind, a mind without regret. If I overcome anger, I will be delightful and loved by everyone.0
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