We seem to be having a bit of a week with late VAT registrations - three so far and it's only Wednesday!
The rules on registration as all based around when you expect your turnover to go over the VAT limit. Essentially there are two different tests.
Motorsport businesses are especially prone to the problem of when do they have to get VAT registered as often turnover can be very volatile - for example, the sudden landing of a big sponsorship deal could put you over the VAT threshold but then the question is whether or not that level of income will continue.
If you should have been VAT registered under the turnover tests, but find out later, how do you handle late registration?
Well the first thing to see is whether or not you can meet the conditions for an application for exemption.
If you can't get exemption, then you have to apply to be VAT registered from the date that you should have been registered, and you'll get a penalty too.