The VAT Initiative campaign is an opportunity for businesses to tell HMRC, between now and 30 September that they should be registered for VAT.
The campaign is aimed at businesses that:
have already passed, or are expecting to pass within the next 30 days, the current VAT threshold of £73,000.
have passed the VAT threshold in a previous 12 month period but did not register for VAT.
would like HMRC help to register now.
want to take advantage of a reduced penalty.
You must register for VAT if any of the following applies:
your VAT taxable turnover for the previous 12 months is more than £73,000 (the current VAT registration threshold)
you think your VAT taxable turnover will exceed the threshold in the next 30 days.
you exceeded a VAT threshold at an earlier point in time and have not registered for VAT.
you take over a VAT-registered business as a going concern.
Not registering for VAT when you have exceeded the threshold is an offence and, in addition to the VAT due, there may be penalty charges. If you tell HMRC voluntarily under the VAT Initiative before 30 September you will incur a lower penalty than if HMRC have to enforce your registration. In some cases, there will be no penalty charge at all. You may also be able to spread the length of time over which you have to pay HMRC rather than paying in one lump sum.