Commentary

V7.142 Identifying the correct date of registration

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.142 Identifying the correct date of registration

Part V7 Tax planning | Commentary

Consequences of late registration

V7.142 Identifying the correct date of registration

An unregistered business has a duty to monitor its activity levels on a monthly basis, and then register for VAT when it has exceeded the registration limit.

If a business fails to register for VAT at the correct time, there are two main consequences:

  1.  

    •     the correct date of registration will be established by HMRC and the business will become VAT registered and liable to VAT on its taxable supplies from that date

  2.  

    •     the business could also be faced with a penalty for belated notification of its liability

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