We are a very small Post Office and convenience store open half days during the virus but delivering groceries, papers, stamps and picking up mail for all our self isolating older residents in the afternoons.
Our problem is we have managed to tick over nicely before this just under the VAT threshold as my wife has a taxed wage from the Post Office. Now by doing our best to fulfil mounting grocery orders from our community during this time we will most likely be taken over the VAT threshold next month. We look on the shop as more of a service and keep our prices low, meaning we make only about 4 – £5,000 nett profit a year.
I’m not trying to avoid paying VAT but life is simper without and I’m pretty sure once this is over our turnover will revert to the regular £1,300 – £1,500 max a week. So two questions please.
Do I have grounds for a temporary exclusion from VAT and how long does that last and if not and I have to register, what’s the best and easiest option please so we don’t lose all our profit.
(Happy to pay for in depth answer)