VAT registration when hitting threshold
VAT registration when hitting threshold
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ianMD

Original Poster:

2,893 posts

201 months

Thursday 11th June 2020
quotequote all
VAT doesn't work for the model of one of my businesses, so I've been trying to avoid hitting the VAT threshold of £85k. However, I've had a sale that is exceptional in that it isn't regular, and can be proven to be a one-off. Unfortunately this sale gets me ever closer to that threshold.

Is there a way in which I won't have to register for VAT, i.e. circumstances where I can justify that it wouldn't normally be where my turnover will be over a rolling 24 hour period.

anonymous-user

84 months

Thursday 11th June 2020
quotequote all
Yes, you can apply for an exception. Here is the relevant page and extract

https://www.gov.uk/vat-registration/when-to-regist...

"Get an exception

You can apply for a registration ‘exception’ if your taxable turnover goes over the threshold temporarily.

Write to HMRC with evidence showing why you believe your VAT taxable turnover will not go over the deregistration threshold of £83,000 in the next 12 months.

HMRC will consider your exception and write confirming if you get one. If not, they’ll register you for VAT."

and the relevant section of the HMRC manual (which isn't that much help)

https://www.gov.uk/hmrc-internal-manuals/vat-regis...

ianMD

Original Poster:

2,893 posts

201 months

Friday 12th June 2020
quotequote all
Thank you, that is what I wanted to hear. Seems I might have a way of avoiding the compulsory VAT threshold. The alternative is I have to 'stop trading' until the turnover balances again!

anonymous-user

84 months

Friday 12th June 2020
quotequote all
If you are running close to the registration threshold, it is worth noting that applying for an exception requires you to demonstrate that your turnover will not go above the DEregistration threshold in the next 12 months. That is £2k lower than the registration threshold and could make a difference.