KEY POINTS
- The backwards and forwards look tests.
- There may be an exemption or exception from the turnover test.
- The pitfalls of registering at the wrong time.
- Problems highlighted by the Mark Mills-Henning case.
- Sudden increases in business turnover should be a warning sign.
Getting VAT registration right is one of the key issues for a small and growing business. There are technical economic and practical problems – all the things that a tax adviser can help with.
I worry about start-ups that cannot afford advice or do not have time to think about VAT but a recent case illustrated how even a business with a tax agent in place can get this wrong. Statutory references are to VATA 1994 unless mentioned otherwise
.On the introduction of VAT ...