I started trading this year as part of a VAT registered partnership.
Prior to this, both partners were sole traders for several years and not VAT registered.
It has now come to light that my partner's total turnover for 2010 was a few hundred over the 37500 VAT threshold for services. This only happened in the last days of the year when the last invoice was issued and even going by the turnover to the end of November, this was not to be expected.
There was no sole trader activity in 2011 - everything was done through the VAT registered partnership.
So, is it OK to have gone slightly over the VAT threshold right at the end of 2010 in these circumstances? Should my partner put an explanation in the expression of doubt box on his tax return to cover himself?
Prior to this, both partners were sole traders for several years and not VAT registered.
It has now come to light that my partner's total turnover for 2010 was a few hundred over the 37500 VAT threshold for services. This only happened in the last days of the year when the last invoice was issued and even going by the turnover to the end of November, this was not to be expected.
There was no sole trader activity in 2011 - everything was done through the VAT registered partnership.
So, is it OK to have gone slightly over the VAT threshold right at the end of 2010 in these circumstances? Should my partner put an explanation in the expression of doubt box on his tax return to cover himself?