VAT de registering
Author
Discussion

flatsix3.6

Original Poster:

756 posts

211 months

Monday 7th January 2019
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Anyone de registered from the VAT scheme, is it a simple online form filling excercise or would it be best done by my accountant, thanks.

dartissimus

954 posts

204 months

Tuesday 8th January 2019
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We did it a few years back on one of our companies. due to low turnover

It's straightforward form filling on the HMRC website.

With a good/valid reason for doing it, there's no problem or need for an accountant, although they'll need to know sooner rather than later

LeighW

5,379 posts

218 months

Friday 11th January 2019
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flatsix3.6 said:
Anyone de registered from the VAT scheme, is it a simple online form filling excercise or would it be best done by my accountant, thanks.
If your accountant is registered as your agent for VAT, let them do it, it only takes a few minutes online.

Luke.

12,036 posts

280 months

Friday 11th January 2019
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Did it in five mins online last year, when the gov changed the percentages for the flat rate scheme.

Elderly

3,738 posts

268 months

Thursday 28th February 2019
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Assuming that you would have to repay VAT already reclaimed on assets (at their present value?)
how many years would they require you to go back?

Eric Mc

125,763 posts

295 months

Thursday 28th February 2019
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Elderly said:
Assuming that you would have to repay VAT already reclaimed on assets (at their present value?)
how many years would they require you to go back?
Date of VAT registration if the asset is still in use.

You don't repay the VAT you originally claimed. You declare output VAT on the sale or disposal value of the asset at the date the business de-registered for VAT AND the asset was still in use at that date.


Elderly

3,738 posts

268 months

Thursday 28th February 2019
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Eric Mc said:
You declare output VAT on the sale or disposal value of the asset at the date the business de-registered for VAT AND the asset was still in use at that date.
Thanks Eric - How is the value of the asset still in use at the time of de-registration calculated or agreed?

Contract Killer

4,509 posts

213 months

Thursday 28th February 2019
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When I De-registered 3/4 years ago, I don't remember having to pay back any vat?

Infact I can remember buying st loads of stuff before hand......



Eric Mc

125,763 posts

295 months

Friday 1st March 2019
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Maybe you didn't de-register probably?

The rules do state that if, at the time of deregistration, you still have in your possession, stock of goods for resale or fixed assets on which you had reclaimed Input VAT at the time of purchase, you should declare the Output VAT on the value of these items at the date of de-registration.

As has also been asked, what values do you use? Well, most businesses should have an idea what the planned resale value of stock should be (after all, that's a key part of how you run a business) so that side of things should be fairly straightforward.

As far as fixed assets are concerned, many assets will have a nil value anyway (such as computers and fixtures and fittings that have been in use many years). The main issue for fixed assets usually centers on large items of plant/equipment and motor vehicles. There should be an honest attempt to value these at the date of de-registration and the Output VAT declared on the final VAT return.