Practical VAT tips when mistakes are made

In an interview after her resignation as prime minister David Frost asked Margaret Thatcher if she would consider returning to that job. At the time her successor John Major was having a pretty torrid time of things. She staunchly replied that she would never go back. However in the world of the nation’s favourite tax accountants often ask me if it is possible to ‘go back’ and correct something that has gone wrong. I refer to these queries as ‘after the horse has bolted’ situations.

So in this article I will share some practical situations of how to deal with things that have gone wrong and back-pedalling is requested. There is not always a happy ending.

Exception to registration

A problem for many accountants is to discover belatedly that a client’s business has...