De-registering VAT

[Lee Winger]

I'm now working alone most of the time and hence not doing the volume of work I once was, so I'm considering de-registering from VAT.

 

Have any of you chaps de-registered? did you have any problems doing so?

 

Cheers

 

Lee

[Tom D]

Someone I know looked into it, you gave to pay back vat on any assets that you still have in the business or have sold within a time period, I don't know the fine detail but it sounds expensive. But then being 20% cheaper could have advantages......

[Rupe]

I did it. I went way under the threshold last year and phoned them up, no worries done! No enquiry, no ifs or buts, I was surprised TBH. It was quite easy.

[Mark Bolam]

Same as Rupe here Lee (but that was in a pre-arb job).

 

Before you do, look at the sums on your fuel bill and any likely major purchases in future.

 

I'm under the threshold, but claiming 20% back on my DERV would be very attractive, especially if more of my clients were commercial and could wear the VAT on their bill.

[Lee Winger]

Thanks chaps, very helpful Rupe cheers.............

[skyhuck]

The VAT people do seem much more helpful these days, I would just give them a ring and see what they say.

 

Few years back I had forgotten to do my return, they just ran me and asked if there was a problem, I apologised profusely, but they said no problem just get it in as soon as you can and were really nice.

[Nick Watkins]

Interesting thread for me.

 

So a few years back I opened a small company bought some machinery and reclaimed the VAT on the equipment. I did very little with the company (and equipment) due to time pressures and now want to fold the company but keep the equipment.

 

Q: Will I have to pay the VAT back on the original value of the equipment at the original VAT rate (17.5%) i.e what I originally claimed back or at the equipments current resale value? And at 17.5% or at 20%?

 

Q: If it's a today's current resale value for the equipment who decides what that value is?

 

Thanks.

Edited April 1, 2011 by Nick Watkins

[Gareth Dalzell]

Interesting thread for me.

 

So a few years back I opened a small company bought some machinery and reclaimed the VAT on the equipment. I did very little with the company (and equipment) due to time pressures and now want to fold the company but keep the equipment.

 

Q: Will I have to pay the VAT back on the original value of the equipment at the original VAT rate (17.5%) i.e what I originally claimed back or at the equipments current resale value? And at 17.5% or at 20%?

 

Q: If it's a today's current resale value for the equipment who decides what that value is?

 

Thanks.

 

Following on from what Skyhuck said....

 

The Vat office will give good advice and they will log it against your VAT number which is good, because if there is ever a problem at least it will be on record that you did ask and try to do the right thing.

They have a small business support section and are great at answering questions and will normally follow it up with a leaflet/advice note or www link to help.

 

When it gets into the detail its better to ask the experts, get it recorded that you asked them what to do (ask for a reference number) and if it all goes ....up at least you can't be done for evasion.

 

And if HMRC VAt office are monitoring this forum, I think you are all really great people and are very fair and reasonable