VAT help!

[Pentium85]

Not sure if this is in right 'topic' but need help!

Just doing the start of my accounts, I collate as much as I can and then accountant does the rest.

Never been VAT registered as was previously no need.

I've just realised income has exceeded 90k this year.... and no panicking that's above the 85k VAT threshold.

What does this mean?!

It means that you need to notify HMRC of the month in which you first knew that you would exceed the threshold. Do it now and they will probably be understanding. The first day of that month will be the beginning of your first VAT period.

Are all your supplies taxable?

When did you actually break through £85k? If you invoiced clients during that period, would they be prepared to accept a revised invoice with VAT on it? Otherwise you’ll have to pay it, I’m afraid.

Time to seek help from your accountant.

Thank you.

Awaiting a call back from the accountant.

Customers unlikely to accept revised so the bill will be left with me, luckily the cash pot is looking good right now so it won't be too much of a hit.

On the bright side, it means things are doing well

Glad you can see the bright side. Good luck.

Take your accountants advice re claiming input VAT back from services you've used over the past 6 months and equipment bought over the past couple of years.

Depending on your trade/industry, you may benefit from adopting the flat rate scheme - again, something to ask your accountant about.

Re date of registration, the earlier poster wasn't quite right. You register once your turnover has breached the limit, not when you think it will, and you have a months' grace. So if you breached it during the 12 months ended 28 February, your date of registration would be 1 April. You also need to know it's not based on the calender year nor your accounting year - the 12 month test is any/every 12 months so you need to check the position at every month end to find where your registration is triggered.

Thanks @user1497207191 that's really helpful information.

My knowledge about how to make money is good, but my knowledge on how to keeps records and account etc is appalling

You register once your turnover has breached the limit, not when you think it will

When she registers, she will he asked when she realised that she would breach the limit.