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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am a self employed architectural technologist. I de-registered

Resolved Question:

I am a self employed architectural technologist. I de-registered for VAT just over 5 years ago. At the time I de-registered, I had a number of clients on my books who had not paid me; or had only part paid me; for work I had done for them. At the time I issued these accounts, I was registered for VAT, and so VAT was added on to their account as required.
I am now in the process of chasing up these outstanding accounts. What is my position regarding VAT, now that I am not registered. Do I still need to add VAT on to the outstanding balances and if so, how can I do that without being registered. Thank you.
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please clarify for me -
If you raised invoices with VAT added because you were VAT registered at the time, how did you account for this VAT to HMRC in your VAT returns?

If you are chasing the debtor (you are chasing value inclusive of VAT I presume) and VAT has already been paid to HMRC in your VAT returns, then you don't have to add VAT on the outstanding balance.

If you are raising fresh invoices, you can only add VAT if you are VAT registered.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

I calculated the VAT on the part payments I received and paid this to HMRC. For example if I sent out an invoice for £2600 + 15%VAT (£390)

and only received £1300 in total, I worked out that what I received was £1130.43 + 15% VAT (£169.57). This is the figure I would include in my VAT Returns. The VAT that was included in my VAT Returns was based on the amount I actually received and not on what I should have received. I am now preparing to re-invoice for what is outstanding. Can I treat these as fresh invoices without VAT.

Expert:  taxadvisor.uk replied 2 years ago.

Thank you for your reply.

I would treat these as fresh invoices as you can't charge VAT if you are not VAT registered and that is the case now.

I hope this is helpful and answers your question.

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