Builder rescued from VAT inspector!
A new client – a small builder – came to us this month with serious worries…..
He had just totted up his turnover and, because of a couple of exceptional contracts, found that he had exceeded the VAT registration threshold back in February. This meant he could owe over £7,000 to the VAT man and face the prospect of another £2,000+ in penalties!
But a review of his subsequent sales quickly showed that his annual turnover was now back below the £81,000 threshhold, which means that an exemption could be sought.
After full disclosure of all the facts to HMRC the builder now has a formal, written exemption ….. and now sleeps easier at night again.