mistakenly going over the threshold by 5k. How bad is it

kingbhome

Trading in sales of services for the last few years but only knowing now that if i went over the 37.5k for services, that i need to register for vat. Going over my accounts now for 2017, ive maybe went over by 5k. Reading online, i should have notified revenue at the start of this year however this has only came to light now.

The mistake i made was that i also supplied goods which i was unaware that this is added to the threshold of 37.5k.

Since i wasnt charging vat all of 2018, am i still liable to pay it because of my mistake i made by now notifying revenue that i went over the threshold in 2017.

If i have to start charging vat from now on for my labor and materials, i will make myself uncompetitive in the market i work in.

What if i didnt go over the threshold for 2018 but did in 2017, would i just be liable foe the 2017 oversight?

Squatter

kingbhome wrote: »

Trading in sales of services for the last few years but only knowing now that if i went over the 37.5k for services, that i need to register for vat. Going over my accounts now for 2017, ive maybe went over by 5k. Reading online, i should have notified revenue at the start of this year however this has only came to light now.

The mistake i made was that i also supplied goods which i was unaware that this is added to the threshold of 37.5k.

Since i wasnt charging vat all of 2018, am i still liable to pay it because of my mistake i made by now notifying revenue that i went over the threshold in 2017.

If i have to start charging vat from now on for my labor and materials, i will make myself uncompetitive in the market i work in.

What if i didnt go over the threshold for 2018 but did in 2017, would i just be liable foe the 2017 oversight?

No connection whatsoever to the company, but have a look at the case study shown at this link: http://tra-professional.ie/vat-registration/

Maybe you need to seek professional assistance/advice?

Heisenburg81

kingbhome wrote: »

Trading in sales of services for the last few years but only knowing now that if i went over the 37.5k for services, that i need to register for vat. Going over my accounts now for 2017, ive maybe went over by 5k. Reading online, i should have notified revenue at the start of this year however this has only came to light now.

The mistake i made was that i also supplied goods which i was unaware that this is added to the threshold of 37.5k.

Since i wasnt charging vat all of 2018, am i still liable to pay it because of my mistake i made by now notifying revenue that i went over the threshold in 2017.

If i have to start charging vat from now on for my labor and materials, i will make myself uncompetitive in the market i work in.

What if i didnt go over the threshold for 2018 but did in 2017, would i just be liable foe the 2017 oversight?

Did you pay VAT on stock you purchased for resale?

kingbhome

Heisenburg81 wrote: »

Did you pay VAT on stock you purchased for resale?

Yes, all vat was paid for for all materials bought. Its been an oversight on my behalf going over the threshold. Only trading a few years and this has been a big wake up for me. I did not charge vat on my labor to anyone because i was of the thinking it was just my labor that i thought was my turnover. I was thinking, if the revenue got their vat through the sales of goods from the stores then i wouldnt need to put in on my books.

aluminium

Carry your December invoices over to January.

Its possible that some of your customers only paid you a booking deposit for products?