VAT REGISTRATION

Jana owns a shop selling newspapers (zero rated) and stationery (standard rated). In her first year of trading to 31 July 2021, her sales of newspapers were £3,050 per month and of stationery £2,250 per month. In her second year of trading, these figures increased to £5,400 and £4,280, respectively. State from what date Jana is liable to register for VAT. Solution Jana Both newspapers and stationery are taxable supplies, so Jana must register when her sales for the previous 12 months exceed the registration threshold of £85,000. In her first year, sales are £5,300 per month, so her turnover for the year ended 31 July 2021, is £63,600. Thereafter, her sales are £9,680 per month, so each month she sells £4,380 more than one year ago. Her cumulative turnover for the previous 12 months at each month end thereafter is as follows: Month end £ 31 August 2021 67,980 30 September 2021 72,360 31 October 2021 76,740 30 November 2021 81,120 31 December 2021 85,500 Jana is liable to register at the end of December 2021 and she must notify HMRC by 30 January 2022 and will be registered with effect from 1 February 2022, or an earlier date agreed with HMRC. Good day sir,I don't understand why 4380 was used to calculate the registration treshold instead of 9680 for the second year.I'll appreciate if you can explain better.