If you temporarily exceed the VAT threshold of £85,000 caused by a blip in sales, you can write to HMRC to ask for an exception so that you do not have to register for VAT. 

A client of ours offers a range of high quality products, as part of this collection, our client offers ‘rainbow’ themed product. Since the outbreak of Covid-19, the ‘rainbow’ has become the image of hope for most of the UK and due to this, our client saw an immense increase in sales for the period April to June. 

As stated in the letter to HMRC, our client exceeded the VAT threshold due to the temporary, unexpected increase in sales which has since reduced back to normal. HMRC agreed and accepted our request for an exception for VAT registration, which resulted in our client saving over £10,000 in VAT.

If you temporarily exceed the VAT threshold and require assistance with how to apply for an exception, please do not hesitate to contact Jake on 01227 277667 or by emailing him at j.mackenzie@mphaccountants.co.uk.

‍