›

Help! I just went over the VAT threshold – what happens now?

JamesmiaaAvaJamesmiaaAva Member
in General

Hi everyone,

I have just realised that I have made over £90,000 in the last 12 months, so I now need to register for VAT. Bit of a panic moment!

I’m not sure how it works, do I have to pay 20% VAT on everything I’ve earned since I went over the limit? Or does it start from the day I register?

Would really appreciate any advice. Thank you!

Share on Google+

Comments

  • benjaminfabibenjaminfabi Moderator

    Hi,

    My advice is get professional advice. VAT is not simple in financial services. Interpretations of the VAT charging exemptions vary considerably in my experience.

    Benjamin Fabi 
    Share on Google+
  • JamesmiaaAvaJamesmiaaAva Member

    @benjaminfabi said:
    Hi,

    My advice is get professional advice. VAT is not simple in financial services. Interpretations of the VAT charging exemptions vary considerably in my experience.

    Thanks for your reply, Benjamin. I will go my tax professional.

    Share on Google+
  • amelia_alicesamelia_alices Member

    You only charge VAT from your effective registration date, not on all past income. Register within 30 days of passing £90,000 and keep records HMRC may require VAT on invoices issued after the threshold date.

    Share on Google+
Sign In or Register to comment.