De-registering from VAT

[Toby1968]

I'll try and keep this brief.

I have a retail outlet, trade has been dwindling for the past two years and doesn't look like picking up. Yes we have tried new ranges/products/adverts etc etc but we have lost our USP as many similar shops have been opening left right and center.

Now we are in the situation were we will make more profit by taking less i.e £67,999 than repeating last years figures of £87,000 and not having to pay the VAT - trust me the sums work and our margins are high - 3.1x cost which is industry standard. There, that's the background info!

I have returned the forms to HMRC last week and I'm no curious if anyone here has either been through this process, or turned down for de-registration? As is says they "will consider you application". If they won't let me de-register then we are pretty much finished.

Thanks in advance for any info you may have on this.

 

[astutiumRob]

It depends on what you've claimed the VAT back on previously - for example fixed-assets etc

Best to talk to your accountant - I'd have done that *before* returning the 700.

 

[Toby1968]

It depends on what you've claimed the VAT back on previously - for example fixed-assets etc

Best to talk to your accountant - I'd have done that *before* returning the 700.

I have spoken to my accountant and since we've been trading for five years the only VAT issue remaining after de-registering will be the value of vat-able stock in the shop that we will have to pay vat on - upfront (bleedin' cheek!)

Just really curious if anyone has been turned down for de-registration and if so for what reason?

 

[Kett]

I have just successfully deregistered from VAT, but I have never hit the threshold and so it probably went through easily. Also did not have much stock.

I registered far to soon based on what turned out to be bum advice by an accountant!

 

[estwig]

I de-registered, it took a bit of faffing around, as does everything involving the tax or vat man.

As a slap on the wrist for previous indiscretions involving not paying my VAT bills, my allowed turnover before needing to be vat registered, was lowered from £70k to £68k.

 

[Toby1968]

I de-registered, it took a bit of faffing around, as does everything involving the tax or vat man.

As a slap on the wrist for previous indiscretions involving not paying my VAT bills, my allowed turnover before needing to be vat registered, was lowered from £70k to £68k.

Thanks Estwig, I don't think they were "picking" on you though as the amount for de-registering is £68k rather than than £70k as you would expect - just another way to benefit the HMRC rather than small businesses!!

Nice to know though that you did manage to de-register, hope mine goes through ok - I'll let you know.

 

[Toby1968]

Well job done, de-registered from vat with no hassle - just have to complete and pay for a final return.

That's that then, all motivation gone and fully fed up. Used to building sales not lowering them!

 

[Sky Racer]

We de-registered last year with no probs at all. HMRC wanted reasons behind the downturn but as we import from Japan and the rate of exchange has dropped quite a lot over past 18 months they were quite happy. Our accountant checked the sums and all was well.