VAT registration query

[Hicks]

Good evening

I am coming to the end of my first year of contracting which has been with the same client.

When I started, due to the rate I was on, I expected my turnover to be just below the VAT threshold of £67,000.

However, during the contract, I agreed to participate in an on call schedule which, upon review of my accounts, has resulted in my turnover comfortably exceeding the VAT threshold.

I plan to discuss this with my accountant next week but wondered if anyone here knows if I now have to register for VAT retrospectively or if I have to taken some other form of action.

TIA.

[frank size]

Get yourself registered ASAP. If you should have registered based on the HMRC criteria (turnover levels) and didn't they will start charging you.

You won't need to backdate your registration from day 1 and redo invoicing but you may have to from the date you should have first registered.

On the plus side there will now be some VAT to reclaim on purchases.

[richy]

...

On the plus side there will now be some VAT to reclaim on purchases.

The register for Flat RATE VAT!

[KentPhilip]

Get yourself registered ASAP. If you should have registered based on the HMRC criteria (turnover levels) and didn't they will start charging you.

You won't need to backdate your registration from day 1 and redo invoicing but you may have to from the date you should have first registered.

I've just been looking at my accounts and have found I am in the exact same situation. I've found that in October last year my turnover for the previous 12 months (Oct 07 to Oct 08) tripped the £67K barrier. Does this mean that if I register now I'll have to pay VAT on all earnings after October last year?

That'll be around £6.5K!

Surely this is a case of double-taxation, because the two agencies I have worked through will have paid that VAT (that they didn't have to pay me as I was not registered) to HMRC already.

What should I do now? Is it possible to register for VAT now, back-date the registration start date to October 2008, and invoice my two agents for the VAT?
(I can't see them being too happy about this, from the hassle factor alone).

Jeez!

[Sockpuppet]

I've just been looking at my accounts and have found I am in the exact same situation. I've found that in October last year my turnover for the previous 12 months (Oct 07 to Oct 08) tripped the £67K barrier. Does this mean that if I register now I'll have to pay VAT on all earnings after October last year?

That'll be around £6.5K!

Surely this is a case of double-taxation, because the two agencies I have worked through will have paid that VAT (that they didn't have to pay me as I was not registered) to HMRC already.

What should I do now? Is it possible to register for VAT now, back-date the registration start date to October 2008, and invoice my two agents for the VAT?
(I can't see them being too happy about this, from the hassle factor alone).

Jeez!

Speak to your accountant. Its not double taxation.

[thelace]

I'm a little below the threshold on my turnover, however my accountant advised to go for the Flat Rate Scheme anyway, which effectively gives you an extra 4% dispoable income