If a retailer realises they crossed the £90,000 VAT threshold three months ago but kept fixed shelf prices, I treat those prices as VAT-inclusive and account for output tax accordingly to maintain accurate reporting, rather than “adding VAT” after the fact. Has anyone here issued VAT-only invoices to B2B customers post‑registration and had HMRC accept the reconciliation on the next return? General information only — specific cases should go to a qualified adviser or attorney.
And i had a similar experience, and I’ve found that being upfront with B2B clients about changes in pricing can help ease the transition. It’s important to explain the situation clearly to avoid confusion; I usually send a note along with the VAT-only invoice. Just make sure to document everything for your records, as @HMRC might want to see that.
It’s tough when you realize you’ve hit that £90,000 threshold and have to adjust your pricing. In my experience, clear communication with clients about how you’re handling pricing is crucial. I’ve found that sending a simple email explaining that your previous prices were VAT-inclusive helps avoid confusion.
You might want to consider adjusting prices for new stock while keeping your old stock prices as they are. I did that when I hit the threshold, and it helped me manage customer expectations. Just be clear about your pricing strategy; communication really is key.