- HMRC has issued new guidance on applying for VAT registration exception for businesses temporarily exceeding the £90,000 threshold.
- Businesses with a one-time income increase can apply for an exception if they provide evidence that turnover will not exceed £88,000 in the next 12 months.
- HMRC will review the application and confirm if an exception is granted; otherwise, the business will be registered for VAT.
- Applications require completion of forms VAT1 and VAT5EXC, with a decision provided within 40 working days.
- If approved, the business is not registered for VAT, but must monitor taxable supplies monthly.
- If the threshold is exceeded again, the business must register for VAT or reapply for exception.
- If the application is refused, HMRC will explain the reasons and register the business for VAT, requiring VAT accounting from the liability date.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
