HOW TURNOVER IS CALCULATED FOR VAT REGISTRATION WHEN A BUSINESS HAS BEEN REGISTERED BEFORE
My client went over the VAT threshold in June 21 as she had three holiday cottages which were very popular with the trend for holidays in the UK during Covid. She registered from August but at the end of October she found a buyer for one of the cottages. I understand it was proving expensive to maintain and not cost-effective. On the basis that with only two cottages her turnover would drop, she applied to deregister and HMRC accepted this and cancelled her registration from the end of November. She has now started upcycling and selling furniture and home accessories and has been stunned by the sums people are willing to pay for her pieces.
At the rate her upcycling business has taken off, I notice her rolling 12 months turnover getting close to £85000 again. Is there any difference in how her turnover is calculated if she has been registered before, and might HMRC register her back to November if her forecast proves inaccurate?
To read the full article – CLICK HERE