cancellation of VAT registration

by **Jambo55** on Tue Oct 18, 2011 11:55 am

Hi All,

I have received a letter from HMRC today ref;cancellation of VAT registration, basically the company concerned was a trading company but for circa the last two years has been dormant, and will be for the foreseable future. I am happy for the VAT reg. to be cancelled but have something nagging in the back of my mind that previously claimed input VAT can be requested back by HMRC - am I making this up or is there something I should be aware of here!!? Thanks!

by **section 44** on Tue Oct 18, 2011 1:05 pm

Deemed supply on deregistration

by **towat** on Tue Oct 18, 2011 4:32 pm

Output VAT on the market value of any assets or stock held at the date of dereg has to be paid, but only if Input Tax has been reclaimed on those items previously.

by **Generix** on Wed Oct 19, 2011 10:38 am

towat wrote:Output VAT on the market value of any assets or stock held at the date of dereg has to be paid, but only if Input Tax has been reclaimed on those items previously.

Can be ignored if less than £8k I think? I forget the exact rules, there are exceptions for property related input VAT too (in case of OTT).