VAT deregistraion question

barnfold

hello

it seems my business has gone £22 over the £65,000 deregistraion threshold.

is there any chance they would let me deregister for VAT, as im having to pay £10,000 just for being £22 over. ?

barnfold

roger_c

As you infer that you are already VAT registered and your taxable turnover is presumably dropping you could always just wait a bit longer to deregister? My assumptions may be wrong though.

Money_Grabber13579

Why are you having to pay £10,000 for being registered? I assume you mean that this is output VAT that you receive from customers that you are having to pay over? If you deregistered, you'd no longer be able to charge this anyway, so you wouldn't be any better off!

jenando999

I'm not an expert but £10,000 seems an awful lot to be paying out if you are just over the threshhold.

I'm a book-keeper for 2 companies and the larger 1 with a much greater turnover pays around that amount per quarter whereas the smaller company who is just about to deregister as he has fallen below the threshhold has been paying roughly £2000 per quarter. He could have been paying much less if he didn't use so many sub-contractors who aren't VAT registered themselves.

I would get your accountant to look into it.

Pennywise

All you have to prove is that your turnover will be less than the dereg threshold for the next 12 months - it doesn't matter what it was for the past 12 months. Put together a good case and send it to HMRC with your dereg application.

Money_Grabber13579

I still don't see how being VAT registered is making you worse off! Can you explain a bit more?