vat

abertawe1

my sister opened a corner shop last may but things are not working out as she thought so she wants to sell up in january.but she doesnt know where she stand as far as claiming her vat back do you have to be trading a certain time or can you claim it back no matter how long you have been trading, any info on this would be very helpfull many thanks ps merry xmas .:)

ILW

abertawe1 wrote: »

my sister opened a corner shop last may but things are not working out as she thought so she wants to sell up in january.but she doesnt know where she stand as far as claiming her vat back do you have to be trading a certain time or can you claim it back no matter how long you have been trading, any info on this would be very helpfull many thanks ps merry xmas .:)

Has she been paying VAT?

chrismac1

You register for VAT first, get a registration date and then fill in VAT returns from the date issued to you by HMRC. Has she been doing this? If so, she'd definitely notice as one-sixth of all her takings on standard-rated items (which excludes most food but not some of her other probably staples such as ciggies, chocaolates, crisps) get handed over every quarter once she has registered. A registered business will then de-register on shutting up. However, if she is selling the business as a going concern there is no VAT on the disposal. A key condition of this is that the new buyer agrees to register from day 1. Unless she is simply closing I recommend professional advice as there are a number of pitfalls for the unwary.