Readers’ forum: VAT registration

27 April 2021

Issue: 4789 / Categories: Forum & Feedback

Temporarily trading above VAT threshold during Brexit.

My client is a self-employed transport consultant and he has always traded below the VAT threshold because he only works three days a week. His annual turnover has been about £60 000 for the past five years.

However his business has boomed because of Brexit challenges and his turnover for the year ended 31 December 2021 was £95 000 – the first time he has exceeded the registration threshold in any rolling 12-month period.

My thinking was that he could ask HMRC for an exception to being VAT registered on the basis that his workload will ease once Brexit issues are sorted out. However his turnover in both January and February has been about £10 000 in each month because of post-Brexit teething problems. He is confident that his business turnover will reduce to £5 000 a month from April 2021 onwards but will this be good...

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