Get a new accountant. If he put that in writing, send it to his professional body. That advice could cost you dearly if followed.
Super poster
Get a new accountant. If he put that in writing, send it to his professional body. That advice could cost you dearly if followed.
Contractor Among Contractors
Contractor Among Contractors
Bit of advice?
> Ditch your accountant
> Advise your agency you're registering for vat retrospectively and ask how far back they'd pay backdated VAT (it's no skin off their nose as they'll be able to reclaim it
> register from the agreed date and get on FRS.
> When your vat number comes in raise an invoice for the backdated vat only.
> receive vat at 20%, pay 13.5% (of gross) to HMRC
> ask accountant to justify why he didn't explain this fundamental tax planning opportunity which could have increased your profits by thousands .
> change your bloomin' user name
Should post faster
Maybe it was random but I had a VAT inspection pretty much 6 months to the day after I had registered.
They were very friendly and competent, much more so than any other part of HMRC. I was happy to send them my invoices which they checked and actually told me that I was due a (small) refund. The turnaround was in the region of 3 days.
I had other experiences with the VAT man after I asked for guidance when working in Europe - all my questions were answered on the phone or they called me back within an hour if they didn't know the answer. All the guidance given was recorded on my account and they gave me a reference number should I need it in the event of an inspection.
The reason I tell you this is that if there was one part of HMRC I really would not want to tangle with it's the VAT man - they know what their business and I suspect they will take your skin off if you're knowingly messing around. Up to you though.
Think about it this way. You've gone over the threshold because you're bringing in more money than you expected. This is a good thing. Pay the tax honestly and congratulate yourself on being fortunate enough to be in the position that you have to!