Discretionary exception from compulsory VAT registration: In D Kaffel v HMRC [2025] UKFTT 397 (TC) (3 April) the taxpayer was a counsellor who operated as sole trader. Her turnover for 25 years had been below the VAT threshold but there was a spike in demand for her services because of stress caused by the Covid pandemic – and this caused her turnover to exceed the threshold. Turnover then went back to pre-Covid levels. Through a misunderstanding of the rules she did not apply for VAT registration at the right time. HMRC have a discretionary power to waive the requirement to register if satisfied that the trader’s taxable supplies in the year following the registration deadline will not exceed the compulsory registration threshold. HMRC did not do this because it was not given information about projected turnover from the date of registration. The information about the fall in...
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Discretionary exception from compulsory VAT registration: In D Kaffel v HMRC [2025] UKFTT 397 (TC) (3 April) the taxpayer was a counsellor who operated as sole trader. Her turnover for 25 years had been below the VAT threshold but there was a spike in demand for her services because of stress caused by the Covid pandemic – and this caused her turnover to exceed the threshold. Turnover then went back to pre-Covid levels. Through a misunderstanding of the rules she did not apply for VAT registration at the right time. HMRC have a discretionary power to waive the requirement to register if satisfied that the trader’s taxable supplies in the year following the registration deadline will not exceed the compulsory registration threshold. HMRC did not do this because it was not given information about projected turnover from the date of registration. The information about the fall in...
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