Share this content
7

VAT de-registration for MTD enabled client

Didn't find your answer?

Search AccountingWEB

Doubt many will have experienced this yet. We have one client, went onto the MTD pilot nice and early, now wants to close their company so we're looking to do the VAT de-registration.

Normally we'd do this via our normal HMRC portal, all fine. However, whilst we can still access the client in the VAT section of our normal portal login, if we click the deregister for VAT option, it basically says we can't do anything that way as they're on MTD.

I tried logging into our new MTD portal, can't see any specifics of any client (despite it confirming I've successfully linked with my "old" non MTD portal).

At this stage I've asked the client to see whether they can do the de-registration via their own login. If not, next plan would be a paper VAT7 form.

Anyone else got any suggestions?

Replies (7)

Please login or register to join the discussion.

By Duggimon
18th Apr 2019 12:42

Why bother deregistering if you're closing the company? Surely the nil VAT return can't be any more onerous than the deregistration process?

Thanks (0)
Replying to Duggimon:
avatar
By Maslins
18th Apr 2019 12:53

Duggimon wrote:

Why bother deregistering if you're closing the company? Surely the nil VAT return can't be any more onerous than the deregistration process?


Good practice if nothing else? Plus I know with PAYE we had some situations where de-registration never properly done, client did DS01, and for over a year afterwards they were getting snotty letters with PAYE penalties for non-submission. Of course with the company dissolved the penalties wouldn't stick, but still, client wasn't happy.

I'd guessed VAT may be similar, with them requesting VAT returns indefinitely, and just assumed everyone would de-register prior to strike off!

Thanks (0)
avatar
By Cloudcounter
18th Apr 2019 13:54

Similar thread to this a few days back

https://www.accountingweb.co.uk/any-answers/deregistering-for-vat-mtd-pr...

Looks like the VAT7 is the pragmatic answer

Thanks (2)
Replying to Cloudcounter:
RLI
By lionofludesch
18th Apr 2019 14:56

See, Maslins - you were wrong. :)

It a good old paper VAT 7 which gets my vote.

Thanks (1)
Replying to Cloudcounter:
avatar
By Maslins
18th Apr 2019 15:58

Ah, sorry, I missed that. Ok, great!...well, not great as it is a backwards step, but great to have an answer!

Thanks (1)
Replying to Maslins:
avatar
By Cloudcounter
19th Apr 2019 11:06

It's probably a temporary backwards step while the issue is sorted, but it sure beats phoning HMRC to try (unsuccessfully as it happens) to sort it out now!

Thanks (0)
By Charlie Carne
23rd Apr 2019 18:17

Would be ironic if one of the consequences of Making Tax Digital was to restrict digital de-registration for VAT!

As an aside, I successfully filed my first MTD return today. After months of not knowing whether the ASA that I set up nearly a year ago would work, it was good to see that my first VAT return was filed without a hitch.

Thanks (0)
Share this content