Client company's rolling monthly t/o exceeded £85k during 2017, so must back-register for VAT. How likely are HMRC to allow a backdated VAT deregistration for (say) mid-2018 (from which point t/o drops permanently to below the £83k de-reg threshold)? It seems to me that, given the 4 year backdate on voluntary registration, the Revenue might just take the same relaxed view over backdating deregistrations. But the VAT helpline won't be drawn on that.
Sub-question, but last time I had a client compulsarily back-register for VAT then HMRC very kindly allowed VAT inputs to be reclaimed from the (back)-registration date. That was some 20 years ago; but is that still a possibility / probability? At this stage, I'm simply wondering whether to post net (of VAT) expenditure to the (long overdue) accounts / CT600.
All opinions gratefully received.
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There is an exception from mandatory registration when turnover is only expected to temporarily exceed the threshold - see at bottom of page:
You cannot back-date the de-registration but when you register make it clear that it is a LNLL case and give the date that you would have been able to de-register from had you been registered.
That will limit the period of registration in the same way as a back-dated de-reg.
Had a hobby business, came to me when HMRC spotted trading levels well over the limits on Ebay. They allowed us to do summaries to determine the period he was over the threshold and prepare return calcs for just that period, effectively allowing retrospective de-registration. We were able to claim inputs over that period too. Had another one with more mess and we ended up flat rate scheming it to keep it simple.