what are the exceptions to registration
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Answer:
Here is ur answer mate
Once a person becomes liable to be registered, he ceases to be liable if he satisfies HMRC that he does not expect his turnover in the 12-month period then beginning to exceed the deregistration limit. This limit is usually set at £2,000 below the limit for registration; £83,000 from 1 April 2017.
Example 8
Bob’s annual turnover has exceeded £85,000, so he is liable to register for VAT.
However, he expects that his taxable turnover in the next 12 months will be less than £83,000. He may therefore ask HMRC for an exception to being registered.
HMRC Notice 700/1, para. 3.7.
In this situation, the person is still required to notify HMRC that his turnover has exceeded the specified limit. At the same time, the person may apply not to be registered. The Value Added Tax Regulations 1995 (SI 1995/2518), reg. 5(1) provides that a person notifies liability on form VAT1, although HMRC have indicated that a VAT1 is not required where the person is seeking exception from registration. They will, however, require details of the business activities. Thus, a person may prefer to submit a VAT1 with a covering letter explaining the full circumstances of the application.
If a person is granted an exception from registration, he will be notified that the specific exceptional supplies which caused him to exceed the threshold on a temporary basis may be ignored in computing the level of turnover for registration purposes thereafter. Without this provision, the exceptional turnover could cause the person to be liable to notify a value of taxable supplies above the registration threshold every month for 11 months after the event. However, if turnover increases after the granting of an exception, a liability to register may later arise. That is to say, the person granted an exception cannot treat it as a blanket relief from the normal requirement to register for any given period of time; it is specific to the circumstances giving rise to the request.
Warning!
Exception from registration requires HMRC’s approval and cannot be assumed. Failure to notify leaves open a liability to be registered for VAT going back up to 20 years.
In the case of a late request for an exception, you must notify HMRC about the known facts that applied when you exceeded the threshold, i.e. the reasons why you had reason to believe that taxable sales in the 12 months thereafter would be less than the deregistration threshold. HMRC will only give weight to evidence that was available at that time, not information which subsequently became available, e.g. actual turnover figures for the following months