Closing Self Employed Business - VAT Obligations

[alisonpeters]

Hope you can help.
I am a sole trader who has been trading for 3 years, but have only been registered for VAT in the last few months.

I have completed only one VAT return which was a repayment for assets bought (computers etc.) I have now been offered a job, which I am going to take, and close down my sole tradership.

I understand that I have to deregister for VAT, but am really confused what I have to declare on VAT form 7 and on my last VAT return. Do I have to pay back the VAT I have reclaimed? I am intending to keep the assets, not sell them.

 

[MyAccountantOnline]

Hi Alison

Have a read here under the section headed 'Accounting for VAT when your registration is cancelled'

 

[alisonpeters]

Thanks.....so by reading that, Im correct in assuming that I have to repay the VAT I have reclaimed?

 

[Scalloway]

You only need to repay VAT on items that you still hold. If the total VAT on the relevant assets is £1,000 or less you do not need to pay VAT.

 

[fiona167]

I am in the same situation I have had a business for 7 months and due to rapidily declining health I have to close. I have been offered £2000.00 to clear the shop stock, fixtures and fittings a fraction of what it's worth I called HMRC this morning and they said it was ok as long as I charge VAT. I need to take the amount as I can't continue working any longer.
Any advice would be much appreciated

 

[Scalloway]

fiona167 are you trading as a sole trader or limited company?