Quote:
Originally Posted by UKSMF
If it was before VAT registration it may be a good idea to offer a refund to the customers of the difference and just get the accounts back into line that should be fine and also a great opportunity to sell them something else lol
Regards
Dave
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Problem with that is if they have claimed the VAT back, how they then account for the refund from a now VAT registered company...hmmm....sorry, just thinking out aloud!
As for repercussions, I suspect more frequent and stringient VAT inspections and possibly a Tax inspection. The VAT office will generally check records every three years and select a couple of random quarters to micro check.
As for how they would find out, I am assuming that you did not put a VAT number on any of your invoices, so should one of your clients have a VAT inspection your invoice could be flagged then, probably not something you want hanging over you for the next few years - seriously think the hands up approach and advise from HM Revenue is going to be in your interest ultimately.