VAT de-registration query?

VAT de-registration query?

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We are hoping to de-register from VAT Spring time-ish next year as we are reducing the number of our guest bedrooms (and selling a self catering cottage!) and therefore our T/O will drop significantly (and quite sharply - so not a slow down as such, more like a slamming on of brakes!), however, I appreciate we will need to deal with the rolling 12 month thing and that's where my little brain gets a bit confused!

If we want to de-register from the 1st April, what do we class as the rolling 12 months?  Does HMRC take your T/O from the end of each month, or day to day - how do you calculate that you're definitely staying under the VAT threshold?  We can certainly prove we will be under the threshold moving forward, but of course we have the legacy of a £120,000.00 season (closing at the end of October for the winter as usual) - we basically need to know, are we better de-registering at the end of a month or the beginning, or does it not matter?  Do we then calculate our T/O at the end of each month, or are we literally having to keep an eye on it on a daily basis?

to de-register on 1st April '15 - the 12 months will be 1 April '14 - 31 March 15 inclusive? Yes? Needing to be under £79,000.

But then do we have to literally re-calculate every day, or can we simply calculate again at the end of the next month - at which point I'm guessing our threshold will then increase to the £81,000 - will this threshold increase happen exactly on the 1st May?

Any help would be much appreciated! :)

Replies (4)

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By ShirleyM
17th Aug 2014 09:21

VAT rolling turnover

If we want to de-register from the 1st April, what do we class as the rolling 12 months? 

Use a spreadsheet and enter the monthly totals for each month, starting with August 2013 to July 2014.

At the end of each month, add the sales for the new month and delete the oldest month, so you always have the figures for the previous 12 months, ie. rolling turnover.

EDIT: read the guidance. If you exceed the VAT threshhold again within a short time it could have consequences. Also, when deregistering you may have to repay the VAT you have claimed on fixed assets.

http://www.hmrc.gov.uk/vat/managing/change/cancel.htm

Thanks (1)
Replying to clairebear:
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By Skye Lark
18th Aug 2014 09:44

Thank you so much - good to know it's end of month to end of month - a daily count up would have been mental!! :)  Thanks for your time! :)

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By DMGbus
18th Aug 2014 08:45

Future low turnover

It is possible to apply to deregister for VAT on the basis of predicted / expected future turnover being below the VAT registration limit.

ie. no need to wait for rtolling 12 momnths figures to fall below the deregistration limit, instead explain why will be below VAT reg'n limit in future (eg. lost a contract, working less hours than previously, will be open a reduced number of weeks per year in the future).

Source:

Questions on form VAT7

and backed up by a Practical VAT news article in Tolleys

17 PVN 12 89

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Replying to kevinringer:
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By Skye Lark
18th Aug 2014 09:45

Thank you soooo much - this is even better news - I will get in touch with the HMRC and see what we need to do, although I think we may try to keep ourselves well above the VAT threshold for 1 more year before removing the 7th room!  Thanks for your answer - it's greatly appreciated! :)

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