A client should have registered for VAT a few years back....HMRC enquiry (not VAT related) but has now come to light. Rolling turnover exceeded threshold for 12 consecutive months and then dropped back below and ever since. Enquiry Inspector said better to register now so as to mitigate the penalties that will arise. He is then going to talk to the VAT people pending completion of his enquiry and agreement of figures etc. such that the VAT returns can then be done at that point and he will take the VAT hit. I have no problem with this. My query is with respect to VAT deregistration....can I deregister him at the point his turnover then drops below the threshold? Or not? i.e. can I only deregister him now/more recently? If registered now (but back-dated) in these circumstances it only seems fair to be registered up to the point his turnover falls below the threshold and him to not to have to take a VAT hit since then. Am I right, or not?
26th Apr 2019
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