I am filing my final vat return after de-registering but I have to make 2 adjustments.One for stock that was bought before de-registering but will be invoiced for after I have de-registered and one for equipment that is to be used after de-registering. How do I account for these amounts?
Hello @MartinW
Its not something the support team can comment on I’m afraid.
I would recommend speaking to your accountant for professional tailored advice.
Check with an accountant regarding the “equipment” bit as how much you might owe depends what you consider the “market value” of the items.
For the stock, assuming its current market value is the same as what you originally paid for it, then you treat it as if you sold all that stock to yourself on the date you cancelled your VAT registration - adjust the return to add the net value of the relevant stock to box 6 and the VAT to box 1.
The resulting journal will include lines that credit “VAT liability” and debit “manual adjustments”, so you’d then make another journal yourself to credit manual adjustments and debit whatever code you used when you purchased the stock in the first place (probably “general purchases”) - effectively the cost to you of that stock is now the cost price including VAT rather than excluding, since you’re no longer eligible to reclaim the purchase VAT.
But you should definitely check with your own accountant - if the total VAT you would owe (on your stock and any other assets) is less than £1000 then you don’t have to account for it at all.
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