Late Registration for VAT - Penalty?

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Pia Bang

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A friend earned over the VAT registration threshold last year and for a number of personal reasons did not get around to registering for VAT yet. Will there be a penalty if he registers now and pays the VAT?

Tks
 
There is a penalty for failing to register for VAT. [broken link removed]

I've not seen ever seen it enforced. Get registered and make and pay the returns.
 
Unless you have been seriously taking the mick, I have alway found it depends on your tone with the person on the phone
and the person on the other end of the phone.

The VAT man is happier you are now registered, which will give them more money.

The line "look folks, I'm doing my best here'. I could stay off your radar
and in the black market like loads of people" always worked for me in the past.

They tend to take out the hatchet for late fees and penalties when you have been really acting the twit.
Always be nice to them and they are generally nice back, in my experience.
 
Thanks, I will let him know. He really was not acting the twit and wants to sort it out so he will be relieved to hear this.

Would there be an increased likelihood of him being selected for audit on the back of late registration?
 
@Nutso - VAT is due on the whole lot not just the excess.

Was all the actual income received in 2012?

If all his clients were them selves VAT regsitered he might issue credit note and reinvoice including VAT. This would appear to be technically the correct way to do this.

There are a number of matters to bo considered here, I would be inclined to see a good accountant.
 
Thanks WizardDr, he is aware that VAT is due on the full amount. The clients are not VAT registered and he agreed a full and final price with them so he planned to account for the VAT within the amount he billed which should be offset in purchase VAT - assuming that he can reclaim purchase VAT from the date he registers from? I have also advised him to see an accountant and I believe he is doing so this week.
 
Pia Bang said:
A friend earned over the VAT registration threshold last year and for a number of personal reasons did not get around to registering for VAT yet. Will there be a penalty if he registers now and pays the VAT?

Tks
Click to expand...


Nutso said:
Thanks, I will let him know. He really was not acting the twit and wants to sort it out so he will be relieved to hear this.
Click to expand...

I'm confused ???
 
Nutso said:
Thanks WizardDr, he is aware that VAT is due on the full amount. I have also advised him to see an accountant and I believe he is doing so this week.
Click to expand...

He shouldn't assume a VAT liability is due until he gets proper professional advice to that effect.
 
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