andymull
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TOGC

When to TOGC

Despite reading the Transfer of going concern guide on the HMRC website i still feel a bit confused about wrapping up VAT when I sell my business. I want a peice of mind I understand this correctly.

We are selling our business (assets and goodwill) to a LTD company who are VAT registered. I meet the conditions to sell as a TOGC, presumably I then fill in a VAT7 form to deregister on the day of the transfer ticking the box that I am deregistering because i've sold the business (TOGC). The new owner then declares income through their existing VAT number and we don't have to transfer the VAT number by a VAT68 form. This would would mean I finish by paying all the VAT due from our ownership and he would start afresh.

 

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12th Jan 2017 08:18

A TOGC means that you transfer the assets of the business to another person who will carry on that business. If that is the entirety of your business, then you will cease to account for VAT from a given date. If you cease to make taxable supplies as a result of the TOGC, then are required to deregister for VAT.
Probably should run it past your Accountant, who will know your business.

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