Question about VAT registration

[manalishi]

Background: sole trader, Web site retail.

I'm sure that I read somewhere on HMRC's Website that there was a quarterly figure above which I'd have to register for VAT. Just rechecked and all I can find is an annual figure: £67,000pa. On this page: http://www.hmrc.gov.uk/vat/reg-how-to.htm#2

Did I imagine the quarterly figure, or was it abandoned?

 

[wemorgan]

I've been VAT registered since starting my Ltd company 2 years ago and believe the £67k/annum threshold has been in place since then. Sorry, I can't comment on before then.

 

[GeeDee]

I didn't think there was a quarterly figure? Before we went VAT registered, because of a massive seasonal variation in our trade, the first and last quarters of the year equated to around 80% of the years turnover. If you used the first quarter to forecast the whole year, you'd be WAY over.
The accountant never mentioned anything about registration until half way through the second year when it was quite apparent that we were going over the threshold... You gotta keep HMRC happy, he's watching

 

[Dryce]

Just rechecked and all I can find is an annual figure: £67,000pa. On this page: http://www.hmrc.gov.uk/vat/reg-how-to.htm#2

Did I imagine the quarterly figure, or was it abandoned?

I don't recall a quarterly figure, just annual.

 

[Mudster]

Be aware that this is a rolling 12 month period and not fixed on the 12 months of your trading period.

 

[stats007]

Isn't that the same thing?

 

[manalishi]

Thanks all, seems I must previously have gotten the wrong end of the stick.

This last three months has been going well, to the point where I was going to defer new business if I was going to get close to £16,000, but I don't have to bother. Which is nice.

Ta muchly

 

[GeeDee]

Be aware that this is a rolling 12 month period and not fixed on the 12 months of your trading period.

Never knew that, so it's any consecutive 12 month period of business?

 

[Mudster]

Never knew that, so it's any consecutive 12 month period of business?

Correct, at the end of your financial year it doesn't reset to zero, it's a continuous rolling period.

 

[imadoofus]

If, at any point, it looks as if your annual turnover will exceed the threshold then you are supposed to register, unless you have good reason to expect turnover to fall again such that the registration threshold won't be exceeded .

 

[verytalldave]

VAT is a pain in the proverbial.
Avoid it if you can.
Just trust me on this one.
Been VAT registered for longer than I care to recall.

 

[manalishi]

VAT is a pain in the proverbial.
Avoid it if you can.
Just trust me on this one.
Been VAT registered for longer than I care to recall.

That's my plan. I downshifted a few years ago, and I really don't want to be an unpaid tax collector for HMG!

Ther's a small benefit for me (more competitive prices for customers outside of the EU), but the VAT red-tape is not worth the hassle. My accountant said something about some flat-rate scheme that makes it easier, but I haven't had time to look into that yet.

 

[Mudster]

I actually find it very simple, but my business is very simple...I buy something in, I sell it....that's it..

My accountant does the VAT returns and I've never had an issue with any of it.

On the odd occasion I've needed to ask for help/information (usually with export orders - zero rated supplies etc), HMRC have always been very helpful.

 

[Aoraki]

I have been VAT reg for 15 years, yes you are an unpaid tax collector but I do the returns myself (SAGE accounting software). All forms filled in online (extra 7 days to complete over paper return), payments via BACS (extra 10 days to pay over cheque method) all in all very easy. I don't usually work for the public however otherwise I would be 15% dearer than someone else who charges the same hourly rate, that could be a problem for some businesses. hth

 

[wemorgan]

That's my plan. I downshifted a few years ago, and I really don't want to be an unpaid tax collector for HMG!

Ther's a small benefit for me (more competitive prices for customers outside of the EU), but the VAT red-tape is not worth the hassle. My accountant said something about some flat-rate scheme that makes it easier, but I haven't had time to look into that yet.

Here's some details on the HMRC website.

Also, here's some previous dicussions in this forum.

HTH

 

[manalishi]

Thanks Will. Seems it's easy to get confuddled. I'll do the reading and find out more.

 

[stats007]

I like being VAT registered

 

[johnsco]

I have been VAT-registered for some 12 years.
Never found it a problem.
But - My affairs are pretty simple, and I do my own VAT return.
Most of my customers are themselves VAT-registered, so the extra 15 per cent doesn't hurt.

Haven't gone on the flat-rate sceme.
It looks attractive at first.
However, a couple of major purchases could soon make it look distictly less-so.

I've always understood that compulsory registration relates to annual (not quarterly) turn-over.
I can see the logic in it being a rolling 12 months - Particularly if you have a business which is developing and growing.

Johnsco

 

[wemorgan]

I have been VAT-registered for some 12 years.
However, a couple of major purchases could soon make it look distictly less-so.
Johnsco

If the capital item purchase is over £2k then you can claim the VAT back even if on the flat rate scheme.