Many businesses have seen a drop in turnover over recent months.
If you are VAT registered this may have taken you below the VAT threshold – so can you de-register?
Well, its attractive, and possibly beneficial if you can. But as with a lot of things the devil is in the detail.
A major problem exists for retail type businesses hovering around the VAT De-Registration threshold of £83k in that De-Registration can paradoxically lead to your turnover increasing and taking you back above the Registration Threshold of £85k – which means HMRC won’t allow De-Registration.
For businesses who invoice VAT separately, eg Business to Business contracts, the considerations are more straightforward, but there is the trap of paying VAT on stocks and assets in hand.
We’ve prepared a guide looking at this in a bit more detail
As always we are happy to talk this through on an individual basis.