The VAT Initiative
So HMRC have finally got round to setting the wheels in motion for this much talked about scheme.
The Vatman is about to write to those business’s it feels have exceed the vat limit – ie the amount you turnover that has exceed the current limit – said to be about 40,000 business’s – and give them a one off offer.
They will be allowed to register for vat and pay back the vat they should have been charging as they went over the threshold. They will also face a mere 10% penalty charge.
So if your business is one of those who has – often in ignorance, as you think excceding the threshold (£73,000 at present) is based on your company year – when in fact its done on a 12 month rolling basis – then you have until 30 September 2011 to take up this mere 10% penalty.
If its your first year of possibly going over the threshold, there is a chance, we are told, that you may not get a penalty – but don’t take this for granted.
If you need help sorting out where you should be and if you should declare for tax – please do give us a shout and we can look at it and organise it for you – head to FTZ Accounts – VAT Specialists.
