deregistering from VAT

[Kett]

Hi, I am thinking of dereistering because when I registered I thought sales would be higher than they have been and even 2 years on I am nowhere near the threshhold (I know I shouldn't have registerred but it was due some duff advice over what could be reclaimed.. water under the bridge now!)

My projected turnover this year is in the order of 50k maybe 54k and the business is now growing again by about 30% pa/

My questions are ...
If I deregister now and in a year or two need to re-register will the HMRC be unhappy about that? Is there a minimum period between deregistration and re-registration?

Should I register when a) the last 12 months turn over crosses 68k or 2) when the last 3 months crosses 17.5k I ask this because the demand is seasonable with 6 months doing better than the rest so I could hit the three month total well before the rolling 12 month one is hit.

 

[David Griffiths]

You can deregister now. Be aware that you will have to repay VAT on stock and assets if the total VAT inclusive value at the date of deregistration is over £6,000

There is no minimum period between de-reg and re-reg - your turnover is a question of fact (or it should be! ) so you are entitled to de-reg now. If you exceed the registration threshold in future, so be it.

The current threshold is £70,000 not £68,000, and it's always on 12 months turnover, not a reduced level for quarterly. (Except, for the pedantic, if you are going to do £70 in the next 30 days on their own)

 

[Kett]

PS I have been on the .gov site and also on business link which it refers to but cannot find these questions answered.

Business link have an interactive question and answer tool which shows I can deregister but doesn't address what happens of I find i have to register again quite soon.

 

[Kett]

Don't worry the turn over is fact and well recorded : )

Thanks for your reply. I will go ahead now and de-register. If I turned over 70k in the next 3 months I would be very happy to be paying VAT anyway! However I am not projecting anything like that.