The Framers Forum

Good morning .
Just idly wondering....Have any of you ever de-registered from VAT ? How difficult did you find it & does one really have to repay all the VAT claimed on fixtures/fittings/stock etc that you still own ?
Thanks.

Do it online. It is very straightforward, just a matter of entering the de-registration date.

There is no question of HMRC recovering the VAT that you legitimately reclaimed while you were VAT registered.

Thanks John.
I've just had a look on the HMRC site ( maybe I should have done that before !)This is what it says :

When you cancel your registration, you must account for VAT on stock and certain assets you have at the close of business on the day your VAT registration is cancelled. You'll need to include assets like interest in land - but only where supplies, if made, were taxable - and tangible goods on which you could reclaim VAT when you bought them. Tangible assets include items like unsold stock, plant, furniture, commercial vehicles and computers.

Boo !

Best check with your accountant, but I did de-registation a couple of years ago, very simple, as to paying Vat back,I thenk it depends on your stock value, mine was £500.00 below the limit, so I didn't have to pay any back

I've often wondered about that. When I registered (about 5 years after I started trading) I was pleased to find that I could claim back all the vat I had paid on equipment/stock - as long as I still had the stuff and invoices involved. So it seems logical that it works the other way. Otherwise some sneeky people would be registering/de-registering on a weekly basis.





Of course you could sell all your stuff to a co-operative person who you trust for 10p + 2p vat. Pay the 2p to HMRC and buy it all back after de-registering for 12p.

Not sure the powers that be would take kindly to that.

Ah, I didn't see anything about stock value, Steve N....so there's a limit is there ?
Yes, I know I should speak to my accountant, but if I did it would all get a bit involved, detailed & chargeable. As most accountants seem to charge like a wounded rhino, I thought I'd run it past you guys first
Thanks.