These newfangled online forms seemed a good idea at the time but I have come across a glitch I thought I would share, because it could cause a big problem if left unnoticed!!

I did my first VAT7 online a couple of weeks ago due to the next 12 months turnover forecast to be below the dereg limit.
It seemed odd when I filled in the form, as it only asks you three questions (I assume there are different q's for different reasons);

1) Why are you deregistering
2) Is the taxable turnover currently above or below the deregistration threshold
3) When would you like to deregister from

But anyway it submitted ok, and on the 'Change Registration Details' page it showed a tick next to 'Deregister', indicating I had requested it be deregistered.

Anyway, nearly 2 weeks later I logged in to check whether a final return had been issued. It hadn't, and also the tick next to 'Deregister' had dissappeared.
I called HMRC who said they have no record of a request for deregistration due to a 'blip' in their system and that I would need to send it again, I queried what would happen to the date of dereg because obviously the client had not been charging VAT from the date requested on the online form, and I was told that he would be deregistered from whenever they received the new form. Brilliant(!).

Luckily the client has not issued any invoices yet, so this hasn't been a problem but if he had then potentially he would've had additional VAT to account for due to an error in the new system.

Since then, I have sent in a paper VAT7 with an accompanying letter explaining the situation and requesting that the original dereg date be implemented - just waiting for a reply now...