We recently assisted a charity that suspected they had an historic VAT registration threshold breach. We undertook a detailed review of all income streams and were able to identify that a number of them qualified for VAT exemption and that they were now trading well below the VAT registration threshold. However, our deep dive did uncover a one off breach caused by an unfortunate obligation from a grant funding agreement.
We sought and successfully obtained agreement from HMRC for exception from registration, allowing the Charity to remain unregistered and saved them from VAT liability and cost caused by the breach.
It is so easy to slip over the threshold and misunderstand income stream liability. Please message or email us any queries you have and we can help.