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HMRC Refusing to deregister VAT

HMRC Refusing to deregister VAT

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Ltd Cy Client registered for VAT. Submitted first Qtr VAT. He has now realised that VAT he will not reach VAT threshold.

I applied for him to be deregistered but HMRC refused asying they donot agree with deregisteration.

Any pointers?

Replies (9)

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By lesley.barnes
12th Apr 2017 16:00

Have they given a reason for refusing the deregistration.

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Euan's picture
By Euan MacLennan
12th Apr 2017 16:04

Did you submit a form 64-8 appointing you as his agent for VAT? If not, they will not accept your instructions.

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Stepurhan
By stepurhan
12th Apr 2017 16:27

They should send out a letter asking for more information to your client. Replying to that should resolve the matter.

You would think that "turnover below the deregistration threshold" as a ticked reason would be enough. In my experience, without at least some VAT returns indicating that to be the case, it isn't.

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JC
By A_non
12th Apr 2017 16:31

I applied online message received back is: "Your request to deregister has been refused because HMRC are not satisfied that your are eligible to deregister VAT based on the information."

WTF?

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Replying to A_non:
Stepurhan
By stepurhan
12th Apr 2017 16:36

A_non wrote:

I applied online message received back is: "Your request to deregister has been refused because HMRC are not satisfied that your are eligible to deregister VAT based on the information."

WTF?

See my above response. Not just one time either.

Thinking about it, I think there was a link from that response to add more information one time I did it. Worth checking if that is the case this time. Basically you need to explain WHY turnover is below the limit. (which is ridiculous, the fact it is should be enough)

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JC
By A_non
12th Apr 2017 17:20

@stephurhan

yes i can see a link for further information. Any thing else i need to mention or just state the turover below threshold.

Ta

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Replying to A_non:
Stepurhan
By stepurhan
13th Apr 2017 09:04

A_non wrote:

@stephurhan

yes i can see a link for further information. Any thing else i need to mention or just state the turover below threshold.

Ta

State why if you can.

Whilst to my mind completely unreasonable, they are wanting to know why the turnover is below the threshold (especially if you have reported it will be above when registering). Work not materialising. Cancelled contracts. Failure to secure a large expected contract. Something like that to explain the change in circumstances should do it.

I suspect it is against the law for HMRC to refuse deregistration where your client meets the criteria. Not sure it's worth the hassle of pursuing it though.

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By sammerchant
18th Apr 2017 11:18

As your request may not coincide with the end of a VAT Quarter, the client may have charged (and paid) VAT which needs to be accounted for. Did you request immediate de-registration or from a future date?

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Replying to sammerchant:
Stepurhan
By stepurhan
18th Apr 2017 11:49

sammerchant wrote:

As your request may not coincide with the end of a VAT Quarter, the client may have charged (and paid) VAT which needs to be accounted for. Did you request immediate de-registration or from a future date?

Whilst that would mean a return would need to be done. It should not affect deregistration. They can deregister immediately, but will be expected to complete (and pay) a final return.
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