VAT deregistration assets valuation

[forsteri]

Can anyone advise what, if any, is the cut off point for what needs to be included in the list of tangible assets in the business in terms of value?

Do I need to include, count and value even the pencils and paperclips?

I also have items that I bought for the business 20 and more years ago that I have no purchase invoices for (records older than 7 years have been trashed) and I can't remember if I could or did claim VAT on them or not.

Do I calculate the VAT due now on assets using to the rate in force at the time I bought the assets and claimed VAT on them, or do I use the current rate 20% for it all?

 

[lesvatadvice]

This is the link to HMRC guidance on the issue: https://www.gov.uk/hmrc-internal-manuals/vat-supply-and-consideration/vatsc23600 which may give some assistance.
The value you ascribe to the goods is the replacement value at the date of deregistration.

 

[forsteri]

Thanks but that guidance doesn't appear to cover any of my queries.

 

[Scalloway]

Take a look at your assets and ask yourself "is there any way this lot would be worth £5,000?"
If the answer is yes I would only ascribe a value to the larger items and include a round sum for sundries.

 

[forsteri]

Thank you - that sounds like a sensible approach.

Main assets are worth about £15k and for a chunk of them I have no memory of whether I claimed VAT on them or not so I have no idea how to calculate my final return. HMRC's guide to VAT deregistration seems woefully inadequate.

 

[Scalloway]

HMRC will be expecting you to have kept records for asset purchases. The simplest thing would be to pay VAT on the lot except for ones where you have definite proof VAT is not due.

 

[forsteri]

So HMRC stating we don't need to keep records longer than 5 yrs isn't applicable if you are VAT registered??

 

[forsteri]

(Corrrection - longer than 6 or 10 years)

 

[Scalloway]

I would keep records for assets as long as they are being used. Goods and services invoices I just keep for the statutory period.