Vat threshold question

Angelo2012

Hi. 
Hope everyone is ok.
I recently set up a business ( October 2020) which has grown extremely quickly. I'm not familiar with the vat process but I wanted to know that now my business has made a revenue of £110,000 between those months, and has now gone over the thresholds. Will I need to pay vat on all of the revenue, or will I only pay from the threshold level to my current revenue?

Also. Due to covid, are there any gov schemes going? I know last year they relaxed vat payments but wasn't sure if anything else was still in place?

I am talking to HMRC next week but just wanted some advice before hand. 

Thank you! 

Stay safe 

Michael 

Savvy_Sue

I'd talk to an accountant before I talked to HMRC. 

Dox

Angelo2012 said:

Hi. 
Hope everyone is ok.
I recently set up a business ( October 2020) which has grown extremely quickly. I'm not familiar with the vat process but I wanted to know that now my business has made a revenue of £110,000 between those months, and has now gone over the thresholds. Will I need to pay vat on all of the revenue, or will I only pay from the threshold level to my current revenue?

Also. Due to covid, are there any gov schemes going? I know last year they relaxed vat payments but wasn't sure if anything else was still in place?

I am talking to HMRC next week but just wanted some advice before hand. 

You'll need to pay VAT on all sales from the point at which you 'should' have registered for VAT. Full guidance here: https://www.gov.uk/vat-registration/when-to-register. 

Not clear from your question if you've registered for VAT? If you haven't, I wonder why not? I wouldn't hang around until you talk to HMRC next week. You can't charge VAT to customers until you are registered, nor can you charge it retrospectively once you have registered, so the amount due to HMRC will come out of your business. Nor can you claim VAT back on purchases until you are registered.

All in all, don't delay unless you believe your this excellent progress with your business is a blip (do hope not) and you expect your turnover to drop dramatically such that you could qualify for exemption from registration - my link above gives the relevant details.

KatrinaWaves

Seconded the comment to get an accountant. They will save you far more than you pay them.