De-register for VAT


S

sks

My business has stopped making taxable supplies (has stopped making supplies
full stop). Is it in my interest to de-regster for VAT. The LTD company is
still active as we have to honour contracts and warranties for the periods
they were agreed for, and we may have to issue some credit notes, as well as
receive some credit notes from suppliers.

If I de-register then when I receive credit notes from suppliers, do I have
to re-pay the VAT on that - they were bought obviously when we were
registered, but if not, then I could de-register and avoid having a VAT bill
until the LTD company is shut down.

We're only talking a few grand on the possible future credit notes received.
 
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T

Tim

My business has stopped making taxable supplies (has stopped
making supplies full stop). Is it in my interest to de-regster for VAT...
At my last VAT inspection visit, the nice lady inspector pointed out to me
that HMC&E (as they then were) would *force* de-registration if I no longer
made any taxable supplies. Even if I continued making exempt supplies. She
said that, although they would *not* force de-registration if a business
just fell below the de-registration limit, they *would* force
de-registration if taxable supplies fell to zero....
 
C

Chris

Tim said:
VAT...

At my last VAT inspection visit, the nice lady inspector pointed out to me
that HMC&E (as they then were) would *force* de-registration if I no longer
made any taxable supplies. Even if I continued making exempt supplies. She
said that, although they would *not* force de-registration if a business
just fell below the de-registration limit, they *would* force
de-registration if taxable supplies fell to zero....
Which I suppose if fair enough, after all if you are VAT registered they
would have to process a nil return each quarter (assuming quarterly
accounting) which knowing how much other services allegedly cost for HMR&C
to provide is probably horredusly costly and a massive waste of taxpayers
money.
 
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T

Tim

Which I suppose if fair enough, after all if you are VAT
registered they would have to process a nil return each quarter
(assuming quarterly accounting) which knowing how much other
services allegedly cost for HMR&C to provide is probably
horredusly costly and a massive waste of taxpayers money.
Perhaps - but wouldn't it be even more costly to keep on registering &
de-registering every other quarter, as you happened to make a taxable supply
or not??
 

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