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Post Info TOPIC: VAT Exception letter


Guru

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VAT Exception letter


Morning all

One of my clients breached the VAT threshold due to the 12 month rolling period, this was due to a large one off payment of approximately 50k, if they had the spread the payments over a few months they would have been fine but did not consult me at the time so what is done is done, in the 9 months since this payment they have only received another 5k so I am confident their turnover will not be over the threshold in the 12 months since this payment, has anyone had to write to HMRC regarding asking for an exception and if so what information did you include in the letter.

Many thanks

Doug



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Guru

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Hi Doug,

It is lovely when clients wait until it's far too late to let you know there's a problem isn't it!

I have done one of these in the past. As far as I can remember we provided a schedule of turnover for the 12 months leading up to the 'problem' month, and an explanation of why that particular month was so high and why it was a one off, and then a projection of turnover going forwards.

As I'm sure you already know, HMRC wait times are exceptionally high at the moment so you might not hear back from them for a while.



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Jenny

Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.



Guru

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Thanks Jenny, I see you are on the devil's number of posts '666'

This could have been so easily avoided but as you say that's client for you, i will do as you say and provide the 12 month period leading to the breach and luckily this was over 11 months ago so I have an accurate figure of the turnover afterwards, I will draft a letter and get the client to sign that they approve before sending to HMRC.

Once again Thanks



__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Guru

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Posts: 672
Date:

Haha true, lucky for some!

No problem. They may ask for more info on how you can be sure that particular order/service won't happen again, but as you are now so far past the incident it's quite easy to demonstrate that it hasn't, so shouldn't be an issue.



__________________

Jenny

Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.

No


Member

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Posts: 8
Date:

be careful. report it to show forward looking, but back in time. not benefit of hindsight.

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Guru

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Posts: 1139
Date:

Hi No

Thanks for the reply, yes I can show that this was a one off payment and is for future work and they continued working on this project throughout 2020, they did not claim any SEISS so it was not as if they had no more work after this payment

Cheers



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice

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