Negotiate a VAT threshold exemption

Our client, a firm of architects, found themselves in a situation where they had exceeded the VAT registration threshold, and were liable for a VAT payment and a late registration penalty.

The problem was compounded because much of their VAT liability had been charged to private clients and was therefore unrecoverable.
 
The situation arose after an exceptionally large contract unexpectedly boosted their turnover. Late payment of large sums had triggered the 12-month threshold.
 
Baker Tilly negotiated with HM Customs & Excise to secure a retrospective exception from registration for our client. We managed to persuade Customs that the increase in turnover was a one-off event, because, at the time the threshold was breached, our client expected the turnover to fall.
 
Our client was registerable in a current period, but the retrospective exception meant that the prior periods were ignored. As a result, our client saved potential VAT and penalty charges of approximately £10,000.