Vat

[uncletom6]

I have just started my accounts for 2016-2017 and it looks like I am over the threshold for VAT. My sales invoices add up to £116k. Is this the figure to take into consideration for the VAT threshold?

[Ryzen]

Yes the threshold is £85k..so unless some of your sales are not subject to vat you will need to register.

[Ryzen]

Unless its a one off and you're not going over the £85k threshold in the next 12 months.You will still need to notify HMRC.

[uncletom6]

Thank you. Jeeps will I now have to pay some vat, i've not charged any but ive paid some on purchases?

[Ryzen]

It dont work like that Tom....You must register for VAT and then from that point you must charge it and you can reclaim VAT paid within the same period.You can't reclaim if you aint been charging.Must admit it would be a good idea though :-)

[uncletom6]

Thanks Ryzan. I heard I would be charged from the customs for all vat that I should have charged. I never realised I would go over the vat figure , so really I should have registered early. Im worried now that I will be stung with a big vat bill.

[Ryzen]

You should register within 30 days of going over the threshold..if you dont you may be liable for unpaid VAT.Do you use an accountant.If not you need to act quickly or it will cost you.

[uncletom6]

Yes I have an accountant. Ive definitely gone over the 30 days