Accountant refuse to de register vat

Discussion in 'Accounts & Finance' started by Tomhardy311, Mar 21, 2019.

  1. Tomhardy311

    Tomhardy311 UKBF Newcomer Free Member

    3 0
    hello everyone
    I’m new and I would like to thank you for guiding me through right pathway

    I’ve been 4 years vat registered
    My last year turn over was £102000
    This first quarter shows already £7000 less than last year
    Also I’m closing for refurbish in the next 3 month or so
    I’ve asked my accountant couple of times to de register as I don’t believe il hit the threshold but he said I can’t do it now and will have to look into it in few month time .
    Few month time is more money out of my business .
    Is it leagal his not doing it or am I missing something here that I don’t know ?

    Regards
     
    Posted: Mar 21, 2019 By: Tomhardy311 Member since: Mar 21, 2019
    #1
  2. StevensOnln1

    StevensOnln1 UKBF Big Shot Free Member

    3,344 721
    The VAT threshold is based on your last 12 calendar months, not the personal tax year or limited company accounting year. You can only deregister for VAT if your turnover for the last 12 calendar months has dropped below £83,000 (the deregistration threshold). You need to add up your turnover for 1st March 2018 to 28th February 2019 to determine whether you can deregister now (next month you would check the period 1st April 2018 to 31st March 2019).

    https://www.gov.uk/vat-registration/cancel-registration
     
    Posted: Mar 21, 2019 By: StevensOnln1 Member since: Dec 10, 2011
    #2
  3. Mr D

    Mr D UKBF Legend Free Member

    13,739 1,506
    If you are going to drop below the limit then look at deregistering yourself.
    It doesn't require an accountant.

    Not following how in a few months time is more money out of your business. Your customers are the ones paying the VAT you collect, if they pay it then you hand it over less whatever VAT paid.
     
    Posted: Mar 21, 2019 By: Mr D Member since: Feb 12, 2017
    #3
  4. Tomhardy311

    Tomhardy311 UKBF Newcomer Free Member

    3 0
    Hi
    My registration is 3rd of January to January nothing to do with company or personal return
    Last year net was 102000 and I believe by end of this year I will not be anywhere near the 83000
     
    Posted: Mar 21, 2019 By: Tomhardy311 Member since: Mar 21, 2019
    #4
  5. StevensOnln1

    StevensOnln1 UKBF Big Shot Free Member

    3,344 721
    Re-read my earlier post. You don't have a fixed 12 month period with VAT thresholds, it is calculated on the last 12 whole calendar months. Not being anywhere near £83,000 later this year means nothing, you have to have dropped below £83,000 turnover for the last 12 calendar months to be able to deregister.
     
    Posted: Mar 21, 2019 By: StevensOnln1 Member since: Dec 10, 2011
    #5
  6. Mr D

    Mr D UKBF Legend Free Member

    13,739 1,506

    So at the point in time where your last 12 full months are total below 83k that's when you deregister. If your total is going to immediately go back up then not worth bothering.
     
    Posted: Mar 21, 2019 By: Mr D Member since: Feb 12, 2017
    #6
  7. DWS

    DWS UKBF Contributor Free Member

    43 6
    Voluntary deregistration is available where your business is expected to make taxable supplies in the next 12 months of less than £83,000 effective from the date of notification or an agreed date with HMRC
     
    Posted: Mar 21, 2019 By: DWS Member since: Oct 26, 2018
    #7
  8. Tomhardy311

    Tomhardy311 UKBF Newcomer Free Member

    3 0
    Thanks
    So what will happen to asset I’ve got ?
    I’ve purchased few things and paid for some services
    Do I have to pay back the vat that was claimed ?
     
    Posted: Mar 21, 2019 By: Tomhardy311 Member since: Mar 21, 2019
    #8
  9. DWS

    DWS UKBF Contributor Free Member

    43 6
    When deregistering, VAT must be accounted for on the final return of any assets forming part of the business assets which are on hand at the last day of registration as if they were supplied unless the VAT on the deemed supply would not be more than £1000
    I strongly suggest that you go back to your accountant and find out why he has refused to de-register you and seek further advice on submitting your final return.
     
    Posted: Mar 21, 2019 By: DWS Member since: Oct 26, 2018
    #9
  10. paulears

    paulears UKBF Big Shot Full Member

    3,740 917
    Accountants work for you. You pay them for their advice. If they give it, based on their understanding of your business and you reject it, and de-register, believing you are correct and they are not, will probably result in them turning you away as a client. They have professional standards they need to follow, and if they don't think you can deregister because of the turnover, then they cannot do it.
     
    Posted: Mar 21, 2019 By: paulears Member since: Jan 7, 2015
    #10
  11. lesvatadvice

    lesvatadvice UKBF Regular Free Member

    723 109
    Technically, DWS is correct. The £83k threshold is applied forward-looking, not retrospectively. You have to satisfy HMRC that you expect your taxable turnover in the next twelve months to be below that limit.
    Or, ask your Accountant to do that. As others have indicated, he/she takes your instructions.
     
    Posted: Mar 22, 2019 By: lesvatadvice Member since: Jul 7, 2011
    #11
  12. JCresswellTax

    JCresswellTax UKBF Regular Free Member

    115 8
    Does you accountant correctly understand the VAT de-registration rules? Please advise.
     
    Posted: Mar 22, 2019 By: JCresswellTax Member since: Dec 11, 2017
    #12