A. In this case HMRC will disregard taxable turnover from the previous period of VAT registration as per para 1(4), Schedule 1 of VATA 1994. Assuming the client isn’t expecting over £90k of turnover in the next 30 days alone, he will have exceeded the VAT registration limit on the backward-look basis on the 31st January 2025. HMRC should be notified on a VAT1 by the 2nd March 2025 and the effective date of VAT registration will be 1st March 2025. VAT should be accounted for on any positive rated supplies from this date. Further guidance on this subject is contained in HMRC's internal manual at VATREG18150.
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