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VAT Re-registration

VAT Re-registration

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My client is a sole trader, 3 years ago he cancelled his VAT registration, I am unsure if this was voluntarily, he now wants to re-register and use his old VAT registration number. I believe that as the company if he had been dormant, he could have used the old VAT number but he has been trading so I think he has to register and be given a new VAT number. AM I correct??

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By spidersong
06th Nov 2015 14:00

Deregistered

Once a VAT number is deregistered that's the end of it. Sometimes if HMRC have made an error in deregistering someone they can get reinstated, if caught early enough.

So no he won't be able to use his old number he'll get a new one, whether he's been trading or dormant makes no difference to that.

 

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By SomerAccounting
06th Nov 2015 14:12

Many thanks Spidersong, 

Many thanks Spidersong, 

This is what I have informed him. Just making sure my information was correct. If he wants to re-register he will get a new number.

 

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By moboffsol
08th Aug 2019 08:16

Following on from this thread, my client's company has been dormant for 2 years and is now trading again. Do they have to re register for vat straight away or can they wait until they reach the threshold again?

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By fawltybasil2575
08th Aug 2019 10:38

@ moboffsol.

After a VALID deregistration has been effected, then one “starts with a clean sheet” in terms of the taxable supplies registration threshold.

Hence, your client company is NOT REQUIRED to register until that registration threshold (of the “new business”) has been reached.

Albeit I surmise that the following circumstance will not apply, one can of course apply to be excepted from registration if one can satisfy HMRC, at the prospective registration date, that one’s future taxable supplies will be thereafter below the deregistration limit.

[To be perhaps unnecessarily pedantic, but for the avoidance of doubt, your words “until they reach the threshold again” imply that the compulsory registration date will be IMMEDIATELY after the threshold has been reached: this is of course not strictly correct, since there is a “month’s grace” after the threshold has been reached].

Whilst I would surmise that the following scenario is almost certainly inapplicable, may I for completeness point out that your client company will be required to register compulsorily if, at ANY point in time, it believes that their taxable turnover will exceed the registration limit in the next 30 DAYS ALONE.

Your client is of course entitled to register VOLUNTARILY at any time if it is beneficial (such was impliedly the case in relation to the OP’s client’s question).

Basil.

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By moboffsol
08th Aug 2019 11:24

Thank You for your very informative reply. Much appreciated

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