A client who has only one sale (web design) is planning on making his Ltd company dormant whilst he goes back to fulltime employment for a while. When would the final VAT return be filed - at the next quarter end as usual or at the date the company is officially dormant for whatevever period has passed since the last VAT return ?
If he has only one sale why have you not de-registered the VAT?
I would suggest you tell HMRC, now, that the client is no longer making VAT- taxable supplies and wishes to cancel the registration (you can do this online). HMRC - assuming they agree - will confirm the date of cancellation and you will hen need to complete a final VAT return and pay the VAT due. Care though the Limited company CANNOT be considered dormant if there is anything going through the business, that includes even a few pence interest paid/received or Bank charges on a business Bank account, so you will have to file year end/pay Corporation tax as usual, I suggest the Bank account is shut down and any payments that are due (eg possibly even that VAT bill, any CT and your bill) are paid for by the Director personally. Only then can you file dormant accounts.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
He chose not to when I pointed out that he could de-register. He wanted to do more work and expand into product sales and now has changed his plans and gone back to fulltime employed work. Can I go ahead and cancel the VAT registration if he has not started dormancy procedures (I am not handling this as I don't do final accounts) ?
He can't be declared dormant yet. If his Vatable supplies are less than the threshold then yes de-register now and then pass it on to his Accountant to finish off. Don't give any advice if your PII doesn't cover it.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
