A tale of two clients

We often receive calls on our free VAT helpline from accountants or businesses where the turnover of a business is above the VAT registration threshold but the business remains non VAT registered. Obviously this can be a serious problem as the business may become liable to significant penalties once registration is applied for due to omitting to meet its legal obligations. However, taking professional VAT advice can give significant benefits , take for example clients A and B.


Client A has lost sleep due to his turnover as a property consultant being over the VAT registration threshold for any months. He finally calls our helplineand to his surprise after our reviewing his activities and income streams it is established that the majority of his income is below the VAT registration threshold. This is due to his supplies mainly relating to land outside the EU  so the income is not VATable. We arranged for the client to register from a current date so he could recover VAT on his UK costs. End result, a happy client who received money from HMRC  rather than paying VAT and penalties.


In client B’s case he isn't so fortunate. His income is over the threshold and HMRC are demanding full payment having applied penalties. We helped the client reduce the debt due to identifying VAT accounting errors. We also negotiated with HMRC to accept payment over a period of time allowing  the client to trade out of his difficulties whilst settling the debt.


In both cases the clients were convinced their business would have failed due to their VAT issues and in both instances we ensured this was not the case. If you or your client are concerned about an undisclosed VAT liability it can be worth calling our free VAT helpline for an initial no obligation discussion as we may be able to help.


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