How much VAT can i reclaim after deregistration?

Question

I have a shop in Weymouth and with this 'credit crunch' biting i need to deregister for VAT.

Can i reclaim VAT from any previous VAT returns.

Thank you

Answer 1

If you are continuing to trade thenyou can only de-register for vat if you can adequately prove to the vat man that your income is below the deregistration threshold.

Form Vat7 is the basic deregistration form and on there you would have to include details of recent takings in order to prove you are elligible for deregistration.

Assuming de-reg does occur, any assets held by the business are deemed to have been taken by you personally and therefore you have to pay vat over @ 7/47ths of the asset value.  If the vat is less than £1000 then you dont have to pay it.  So if the assets are worth £6714 or less you're okay.

You cannot back date a de-registration and therefore you won't be able to do anything about returns already submitted or returns that you need to submit prior to the de reg date.