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VAT deregistration

I have my self assessment head on at the moment and I am struggling with a query from a client!

He wants to deregister for VAT and I need to know what will happen with WIP - should he raise an invoice up to when he is due to deregister?



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By DMGbus
18th Jan 2012 22:16

"Work in progress" don't exist in HMRC guidance

I can't find any reference to "Work in Progress" in any HMRC guidance on the subject of deregistration.  I have word-searched several HMRC documents on the subject to no avail.


VAT internal guidance V1-3 is the closest I can get to a clue to the answer to the query:

Assets include those goods purchased where title


has not yet passed to the taxable person but where input tax on the purchase


has been allowed for example goods on HP, lease purchase and goods


subject to reservation of title clauses. Also included are goods manufactured


by the taxable person where input tax has been allowed on the component


parts of the finished article.

Note the reference to "GOODS" - not services / labour.

Inference: pay VAT VAT back on the GOODS element of WIP but NOT the labour content of WIP.


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