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Post Info TOPIC: De-registering for VAT (& updating VT+)
Kinbuck


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De-registering for VAT (& updating VT+)
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Hi Everyone

New experience for me that my mind is struggling with.  I have a client who was registered for cash accounting from Jan 2017 with previous bookkeeper.   Due to health issues the income has reduced massively (couldnt work for 4 months) and will not ever go anywhere near the threshold again.  He asked me to de-register him as the VAT is also having an impact on getting work.  Ive put the outstanding invoices into a dummy account so that they show on the VAT return and all the input VAT is accounted for; happy with that bit (I think).

The bit thats bothering me is that on the first return the VAT on a business vehicle purchased in 2015 was reclaimed and he got a refund.  Do I need to do anything about this vehicle?  Will it have an impact?  VAT is a scary subject!

Also, I cant see where in VT Id put the date in to show he's de-registered.  Can anyone direct me please?

Thanks



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Janet

They keep making the system idiot proof but then make bigger and better idiots!
Artois


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Hi Janet

I am by no means a VAT expert but my understanding is that on deregistration any assets still forming part of the business must have VAT accounted for as a deemed supply, unless the VAT on this supply is no more than £1,000.

So for the vehicle (I take it you mean a commercial vehicle) a valuation would be needed which would normally be based on the cost of an identical purchase

I will try and dig out the relevant legislation later if I get the time

As I said I am no expert so please wait and see if others can either confirm this or give other advice

With VT I have never had to do deregistration before so cant help, sorry 



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice
Artois


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Artois wrote:

 

Hi Janet

I am by no means a VAT expert but my understanding is that on deregistration any assets still forming part of the business must have VAT accounted for as a deemed supply, unless the VAT on this supply is no more than £1,000.

So for the vehicle (I take it you mean a commercial vehicle) a valuation would be needed which would normally be based on the cost of an identical purchase

I will try and dig out the relevant legislation later if I get the time

As I said I am no expert so please wait and see if others can either confirm this or give other advice

With VT I have never had to do deregistration before so cant help, sorry 

 Hopefully this will help

https://www.gov.uk/hmrc-internal-manuals/vat-supply-and-consideration/vatsc23600



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice
Leger


Master Book-keeper

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Hi Janet 

In VT+ you just need to uncheck the VAT box. (settings - vat)   Obviously ensure all VAT cash accounting is completed before unchecking the box.

 



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Kinbuck


Senior Member

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Posts: 159
Date:
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Sorry for the delay...internet went down!

Thanks Doug, I'll get a look at that link now I've got connection.

Thanks John, I'd looked at the settings but was expecting to see somewhere to put the date - it's quite simple when you know what you're doing :)

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Janet

They keep making the system idiot proof but then make bigger and better idiots!
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