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VAT Deregistration, the flat rate scheme and limited cost traders

CareerchangerCareerchanger Registered, AATQB Posts: 5
Hi.

When the Flat rate Scheme came along many years ago I went ooh! this is great and spent a fair few years reaping the benefit of the scheme. Now, I find myself as a limited cost trader and the benefits of VAT registration have disappeared and I have decided to deregister.

This is for a very different line of work. I'm also AATQB but with limited experience (and looking for opportunities to gain more!), so I just wanted to run past everyone that I have got the right picture of deregistration for FRS members:

1) As I voluntarily registered for VAT, I can choose my deregistration date (normally at the end of an accounting period)
2) I have to leave the FRS separately (date is one day before deregistration: 733 Section 12.4)
3) Output tax on assets and stock only needs to be accounted for on assets and stock bought before registration, for which VAT was reclaimed at registration and are still on hand at the date of deregistration: 733 Section 12.4
4) The value of those assets is normally taken as the current market value:700/11 section 7.8
5) If the VAT on the value of those assets is less than £1000, no VAT is due: 700/11 section 1


Comments and corrections appreciated. Many thanks
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