VAT threshold

[officepres]

We were just under the 37500 vat threshold in 2016. For 2017 we don't know whether we'll be under again. If we register/charge and pay vat to the revenue throughout the year then what happens at the EOY if we turn out to be under the threshold - does the vat come back to us and do we have to pay it back vat to customers

Or if we don't register/charge/pay vat through the year but then at EOY turn out to be over the threshold by a small ammount - then would we be liable for vat on the full 37,500 threshold

 

[Mrs Vimes]

The threshold is the point at which you are obliged to register for VAT, you may choose to register if turnover is below the threshold.

I'm not sure the answer to your second query - the threshold applies to any 12 month period, not necessarily a year or an accounting year and you are obliged to register once it becomes apparent that you will exceed the threshold.

 

[officepres]

Thanks for that ...

the threshold applies to any 12 month period, not necessarily a year or an accounting year and you are obliged to register once it becomes apparent that you will exceed the threshold.

so does that mean that I have to check every month going forward whether I'm over the threshold or not - what happens if I miss a month or two and go over the threshold without registering

 

[Mrs Vimes]

I don't know what happens if you go over the threshold without registering - I assume you would have to account for the VAT you should have charged.

It sounds like you might be better off remaining registered, especially if your customers are VAT registered themselves.

 

[officepres]

thanks