Share this content
0
3086

Deregistering for VAT - MTD problems

Didn't find your answer?

Search AccountingWEB

I have a client who has now ceased trading, so would like to deregister for VAT. I accessed my (orignal) agent login with HMRC to do this, click on 'deregister for VAT' and get this message:

Your client has signed up for Making Tax Digital for VAT so you cannot submit their returns using VAT online services.

In order to submit VAT returns for your client under Making Tax Digital you'll need:

  • an agent services account - this is different to your HMRC online services for agents account
  • software that's compatible with Making Tax Digital for VAT that can link to your client's digital records

Check the step by step guidance for agents to find software and create an agent services account.

Sign in using your agent services account if you want to:

  • set up, cancel or amend a direct debit
  • make payments by bank transfer, debit or corporate credit card
  • tell HMRC about a change of circumstances

When I login to the new 'agent services account' that we set up, there are no services set up so no access to my client's VAT. 

Has anyone else had this problem? I'm on hold with HMRC at the moment (30 minutes and counting!) will have to hang up shortly as I have a meeting.

Replies (20)

Please login or register to join the discussion.

avatar
By nodrogbir
16th Apr 2019 15:10

Thats a good one - I deregistered a client ages ago and have heard nothing , I can't get through to HMRC on the phone and when I write in my letters are ignored so AGAINST the Law HMRC are keeping my client in the VAT system unfairly , they are not adhering to the TaxPayers charter and are causing my client financial loss through no fault of their own. Do you think a County Court Claim for negligence might be an option.

Thanks (0)
avatar
By Cloudcounter
16th Apr 2019 15:28

Why not simply submit a paper form VAT 7? Would have saved you 29 of the 30+ minutes and all the other time spent on this

Thanks (0)
Replying to Cloudcounter:
RLI
By lionofludesch
16th Apr 2019 16:11

Cloudcounter wrote:

Why not simply submit a paper form VAT 7? Would have saved you 29 of the 30+ minutes and all the other time spent on this

This is the answer.

Thanks (0)
avatar
By Miller83
16th Apr 2019 15:31

It probably isn't in-line with the digital world we live in but you could just submit form VAT7? (unless they now reject this if someone is registered for MTD?)

Thanks (0)
avatar
By memyself-eye
16th Apr 2019 15:39

I've just (yesterday) applied for a client deregistration- he wasn't in MTD so I used the 'old' system. I will wait and see if HMRC deregister him or not - and how long it takes.
My guess is they are 0r soon will be, inundated with requests.

Thanks (0)
Replying to memyself-eye:
avatar
By GHarr497688
16th Apr 2019 15:42

I can't believe how many people are deciding to deregister for VAT - seems MTD burden will affect the Economy - people in UK have had enough of all this red tape for no good reason.

Thanks (0)
Replying to GHarr497688:
RLI
By lionofludesch
16th Apr 2019 16:12

GHarr497688 wrote:

I can't believe how many people are deciding to deregister for VAT - seems MTD burden will affect the Economy - people in UK have had enough of all this red tape for no good reason.

Don't worry, all this will disappear after Brexit. ©

Thanks (0)
Replying to GHarr497688:
By Tim Vane
16th Apr 2019 23:03

GHarr497688 wrote:

I can't believe how many people are deciding to deregister for VAT - seems MTD burden will affect the Economy - people in UK have had enough of all this red tape for no good reason.

It will be good for the economy. The people deregistering are those below the threshold and most are on FRS and using it to top up their income at the taxpayers expense. FRS was intended to reduce the VAT compliance burden on growing businesses but has been misappropriated by small businesses, aided and abetted by the accounting profession, as a source of state aid. If the burden becomes too heavy for these fakers then the change in the net VAT collected will be the same or may even rise. Businesses that are not really viable without being topped up by the FRS will be forced to close. Genuine viable businesses will pick up the slack and be able to employ those who were previously “working for themselves” and the coffers get a further boost. It will help unwind the false self employment economy.

Thanks (0)
Replying to Tim Vane:
avatar
By GHarr497688
16th Apr 2019 23:15

I can assure you that no one I know is on the FRS scheme so in my case I must disagree. HMRC will no doubt reduce the limit anyway. Glad I will be out of it !

Thanks (0)
Replying to Tim Vane:
RLI
By lionofludesch
17th Apr 2019 08:35

Tim Vane wrote:
FRS was intended to reduce the VAT compliance burden on growing businesses but has been misappropriated by small businesses, aided and abetted by the accounting profession, as a source of state aid.

Easily solved - end the FRS. Yet the Government - indeed successive Governments - have chosen not to do so.

Not the fault of traders or accountants, we just play to the rules set by others, no matter how ludicrous they may be.

Thanks (0)
avatar
By Matrix
16th Apr 2019 17:55

So MTD means the only way to deregister a client is a paper form?!

I have a client who has just ceased trading, so if they deregister now then they will be in MTD for just two weeks.

Thanks (0)
Replying to Matrix:
RLI
By lionofludesch
16th Apr 2019 18:06

Presumably there'll be some equivalent procedure within MTD.

Not having signed anyone up, I couldn't say.

Thanks (0)
Replying to lionofludesch:
avatar
By Matrix
16th Apr 2019 18:19

Aren’t they getting the client lists sorted? So we should be able to deregister online when MTD is all sorted.

No I haven’t signed anyone up yet either. I was waiting until all sorted or until around 15 May, if earlier.

Thanks (0)
Replying to Matrix:
avatar
By GHarr497688
16th Apr 2019 18:26

We are trying to get clients into software so we can’t sign anyone up and Hmrc are no help as they are making light of this massive change in Vat and tax admin . This actually makes the difficulties worse rather than better .

Thanks (0)
avatar
By PennyPincher
17th Apr 2019 06:13

Could it be that the client now needs to log in/create their business tax account and deregister through this? There should be a function for agents but hmrc seem to make it as difficult as possible for us these days despite the client paying us to deal with it for them because they don’t want to have to go through the process of deregistering themselves

Thanks (0)
avatar
By LouiseSTB
17th Apr 2019 07:58

I finally got through to HMRC - they advised it is an error and to send a VAT7.

Yes the VAT7 is the reasonable answer here - but having used the online services for this for years it feels like a step back now, would rather have had a solution to the online problem.

Re the 'deciding to deregister' comment - my client has simply ceased trading, nothing to do with MTD etc.

Thanks (1)
Replying to LouiseSTB:
avatar
By Matrix
17th Apr 2019 08:10

Did you point out the irony of the new digital system generating the need to go back to paper forms?

Thanks (1)
Replying to Matrix:
avatar
By GHarr497688
17th Apr 2019 08:53

Why say anything to Hmrc they don’t listen anyway .

Thanks (0)
avatar
By cmiskin
04th Jun 2019 10:37

There is a new online service which agents can use to notify HMRC of changes for MTD for VAT clients, including cancelling registration. It is rather hidden away but can be found here: https://www.gov.uk/guidance/update-your-clients-business-details-if-they...

It worked successfully for an ICAEW member who I directed to the service.

Thanks (2)
avatar
By LouiseSTB
04th Jun 2019 11:54

Thanks for that, will save the link.

Still waiting for the VAT7 to be dealt with, posted on 18th April! Been advised it will be dealt with this week.

Thanks (0)
Share this content