Competition/stud and livery business breaching VAT registration threshold
Background: A new client came to us as their previous accountant had retired. They had traded around the VAT threshold for a number of years and the business had stagnated, as they were concerned that if they registered for VAT the business would be unviable..
How we helped: After an initial review of the previous accounts and current books and records, we were able to identify significant capital expenditure which would qualify for a full VAT refund on initial registration. Additionally, due to the various different types of supply, some of the income streams would be exempt from VAT. The initial VAT refund was over £20,000 and in nine VAT quarters out of ten the business continues to receive VAT refunds.