If I deregister for Vat what do I charge current clients


K

Ken

I hand over my business (Vat registered) to another party but not the Vat
number.
These clients signed a contract under the name of the business I am handing
over.
Can I invoice in my name and ask them to pay me? New owner of the business
happy for this to happen.
Can I invoice in name of company or am I falling foul of the rules? Again
new owner happy for me to do.
Can I deregister for Vat and therefore charge these clients net of Vat which
to some will be a major benefit a they are not Vat registered?
Should I ask the clients to sign new agreement direct with me and tear up
the old one?

Any help would be good.

Ken
 
Ad

Advertisements

T

Troy Steadman

I hand over my business (Vat registered) to another party but not the Vat
number.
These clients signed a contract under the name of the business I am handing
over.
Can I invoice in my name and ask them to pay me? New owner of the business
happy for this to happen.
Can I invoice in name of company or am I falling foul of the rules? Again
new owner happy for me to do.
Can I deregister for Vat and therefore charge these clients net of Vat which
to some will be a major benefit a they are not Vat registered?
Should I ask the clients to sign new agreement direct with me and tear up
the old one?

Any help would be good.

Ken
This doesn't make any sense. You have sold your company but you intend
to keep its clients and the new owner is happy for you to do that?
 
T

tims next home

Troy Steadman said:
This doesn't make any sense. You have sold your company but you intend
to keep its clients and the new owner is happy for you to do that?
No he didn't say that.

He said he's sold the company but did not transfer the VAT registration.

This implies to me that he is a sole trader (as with a ST it is the
individual, not the company that is registered)

This means that (he thinks) all the contracts being previously agreed with
Mr Jim Smith are not automatically transferred to Mr Joe Brown and he wants
to know the best way out of this problem.

(I don't know the answer!)

tim
 
M

mjt95

I don't understand the question!

I would refer you to VAT guide 700. It's a long read, but it should
resolve the situation that you see.

Unfortunately, based on your opening post, it is unclear what is
actually happening. If you read it a certain way, it looks like fraud
combined with VAT evasion....



No he didn't say that.

He said he's sold the company but did not transfer the VAT registration.

This implies to me that he is a sole trader (as with a ST it is the
individual, not the company that is registered)

This means that (he thinks) all the contracts being previously agreed
with Mr Jim Smith are not automatically transferred to Mr Joe Brown and
he wants to know the best way out of this problem.

(I don't know the answer!)

tim
--

mjt

A supporter of http://www.taxpayersalliance.com/, fighting to stop the
government ripping off the taxpayer.

Tax cuts v public services? No! Tax cuts *for* better public services.
 
P

PeterSaxton

I hand over my business (Vat registered) to another party but not the Vat
number.
These clients signed a contract under the name of the business I am handing
over.
Can I invoice in my name and ask them to pay me? New owner of the business
happy for this to happen.
Can I invoice in name of company or am I falling foul of the rules? Again
new owner happy for me to do.
Can I deregister for Vat and therefore charge these clients net of Vat which
to some will be a major benefit a they are not Vat registered?
Should I ask the clients to sign new agreement direct with me and tear up
the old one?

Any help would be good.

Ken
Did you transfer the business or the assets? Are you still planning to
continue trading with your old clients?
 
T

Troy Steadman

No he didn't say that.

He said he's sold the company but did not transfer the VAT registration.

This implies to me that he is a sole trader (as with a ST it is the
individual, not the company that is registered)
You are probably right and if so this is a big moment in linguistics -
I have never heard a Sole Trader describe himself as "company" before.

Possibly they can be, a partnership certainly can be and often is.

Most sole traders say "I sold the business".
 
Ad

Advertisements

P

PeterSaxton

You are probably right and if so this is a big moment in linguistics -
I have never heard a Sole Trader describe himself as "company" before.

Possibly they can be, a partnership certainly can be and often is.

Most sole traders say "I sold the business".
Many sole traders describe themselves as a company. I always ask a few
questions designed to highlight contradictions.
 
K

Ken

Troy Steadman said:
This doesn't make any sense. You have sold your company but you intend
to keep its clients and the new owner is happy for you to do that?
Sorry my explanation was confusing. New owner takes over 90% of clients but
some where the service being offered, by my company, is nearing completion
are to be kept by me. Would be very confusing to let these go to the new
owner. All parties accept this - me - new owner and so will the clients once
they are made aware of the change of ownership. In fact they will feel very
relieved they are not just being dropped by me and put in the hands of a
stranger.

Ken
 
K

Ken

tims next home said:
No he didn't say that.

He said he's sold the company but did not transfer the VAT registration.

This implies to me that he is a sole trader (as with a ST it is the
individual, not the company that is registered)

This means that (he thinks) all the contracts being previously agreed with
Mr Jim Smith are not automatically transferred to Mr Joe Brown and he
wants to know the best way out of this problem.

(I don't know the answer!)

tim
Hi T im

Yes more or less and just posted more detail.

Ken
 
K

Ken

No not fraud or Vat evasion just want to make sure I do it the right way.
The Vat guide is too long to take in and I will call the Vat help line but
would rather get some independent tips before I do so. You do have a very
suspicious mind!!!!!
 
K

Ken

Troy Steadman said:
You are probably right and if so this is a big moment in linguistics -
I have never heard a Sole Trader describe himself as "company" before.

Possibly they can be, a partnership certainly can be and often is.

Most sole traders say "I sold the business".
Husband and wife partnership - not Ltd Co.

Ken
 
Ad

Advertisements

K

Ken

PeterSaxton said:
Did you transfer the business or the assets? Are you still planning to
continue trading with your old clients?
My other post a few minutes ago may explain.
It will be a transfer of the business but there are no physical assets apart
from records and web site.
The majority of clients to be passed over but I will keep dealing with a
very small number for about two more months until completion of the service
to them which is at a very advanced and sensitive stage.

Ken
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top