VAT Registration - Future Test?

Question

For the future test for VAT registration, where you expect taxable supplies to exceed £61,000 in the next month,

does that mean taxable supplies for the whole year up to that point,
or just supplies in that one month?

Answer 1

It means taxable supplies for the 12 MONTHS up to that point, not your accounting year. Easiest way to track this is to enter each month's suppiles on a spreadsheet and keep a running total. As soon as it hits £64k, then you know you need to register.
Your customers can only reclaim VAT if they are registered.

Answer 2

It means the taxable supplies you expect to make in just that month.

This test overrides the past turnover test so for a rapidly expanding company it can bring the date of registration forward. As an example (note the registration limit is now £64,000) -

Turnover in the twelve months ended 30th April = 65,000

Turnover for may expected to be 20,000 (below the threshhold)

You would have done this calculation during May and registration would be effective from 1st June.

But, if the anticipated turnover for May was 65,000 then the date of registration would be 1st May.

Answer 3

The "future test" I think is designed to prevent abuse where a person may be selling large items in his business. If say you sell expensive cars at perhaps £100000 each you would have to register with this test when you have got a sale agreed so that you cannot escape tax on that item as you would be able to if you looked back over the year and saw that you had sold one for £100000!

Answer 4

The whole year to that point. Depending on what you do, it may be worth registering for VAT anyway so your customers can reclaim (if relevant)