I only ever once nearly went over the limit for vat just under by 100 quid now I just get the punters to get there own gear if its a large amount . sod that theres enough paperwork to doIt was quietly announced today it will not be starting in 2020 as long as you are below the vat limit
I'm somewhat relieved
It was quietly announced today it will not be starting in 2020 as long as you are below the vat limit
I'm somewhat relieved
Do you have a link to the announcement? I have a friend to whom this might be of interest.
I only ever once nearly went over the limit for vat just under by 100 quid now I just get the punters to get there own gear if its a large amount . sod that theres enough paperwork to do
I don't get it. They pushed us from paper to use their online forms now we have to use some software?
Making things more difficult and expensive for the little guy and companies like amazon abuse every tax loophole and get grants and subsidies.
I don't get it. They pushed us from paper to use their online forms now we have to use some software?
I'm not sure that this is true (I am not an accountant). The VAT registration requirements are pretty clear that you need to exceed the annual VAT threshold for registration to be mandatory. You should be able to stay unregistered, even if you almost hit the annual threshold, as long as (1) your turnover for the previous 12 months is below and (2) you won't exceed the threshold in the next month.Trouble iif you go over 25% of the annual threshold in one quarter you have to register for VAT. This is a real pain for seasonal workers.
This is what my company does - we sell our software as a subscription. The main reason is that these days the software runs in the cloud and we pay for the infrastructure to run it, as well as paying for the software, we are effectively resellers of Microsoft cloud storage and CPU cycles and that is charged to us on an ongoing basis. It's a pretty small step to getting our customers to also pay the ongoing costs of our development and support teams.The thing I dislike about it is that the firms who supply the software do so on a subscription basis
I'm not sure that this is true (I am not an accountant). The VAT registration requirements are pretty clear that you need to exceed the annual VAT threshold for registration to be mandatory. You should be able to stay unregistered, even if you almost hit the annual threshold, as long as (1) your turnover for the previous 12 months is below and (2) you won't exceed the threshold in the next month.
In the end, the decision about when you register is up to you, but if you screw it up you might get fined - it's like self assessment tax, where you can tell HMRC to reduce your payments on account, but if you reduce them and then still need to make a balancing payment next January, they'll come back for interest or fines. I guess that the thing about going over 25% of the annual VAT threshold in one quarter, is that it means that you need to consider that you might go over the annual amount.
This is what my company does - we sell our software as a subscription. The main reason is that these days the software runs in the cloud and we pay for the infrastructure to run it, as well as paying for the software, we are effectively resellers of Microsoft cloud storage and CPU cycles and that is charged to us on an ongoing basis. It's a pretty small step to getting our customers to also pay the ongoing costs of our development and support teams.
I agree that paying for software that you buy, install on your own kit and support yourself should be a one off payment. The other thing is, I pay about £20 a month to Xero which seems pretty cheap compared to the £££s I used to spend on the junk that was Sage and their never-ending updates. Switching to MTD for VAT on Xero took 5 minutes, if I was still in Sage land I probably would have to have got my accountant to do it.
You can apply for a registration ‘exception’ if your taxable turnover goes over the threshold temporarily.
Write to HMRC with evidence showing why you believe your VAT taxable turnover will not go over the de-registration threshold of £83,000 in the next 12 months.
HMRC will consider your exception and write confirming if you get one. If not, they’ll register you for VAT.