Where your cumulative sales for a 12 month period exceed the VAT registration threshold (currently £73,000), you must register for VAT. HMRC are writing to around 40,000 businesses whose turnover has apparently exceeded the VAT registration threshold, inviting them to register for VAT under the special ‘VAT initiative’ campaign.

If you receive such a letter from HMRC, or realise you should now be VAT registered do contact one of our VAT experts.  If you register for VAT under this ‘VAT initiative’ will be charged a penalty of only 10%, or possibly no penalty at all if the delay in VAT registration is less than 12 months.

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