VAT account

Hi HMRC admin, I sold my limited company which is VAT registered. Does it mean now the VAT belongs to the new owner and the new owner can link VAT to his gateway and submit VAT return as usual?

Hi. If you have sold your VAT registered limited company to a new owner then the new owner is now responsible for the VAT registration number and for completing VAT returns via the Business Tax Account. If the new owner has kept the same VAT number then I would recommend you remove the MTD service from your account so that the new owner can register for the MTD service themselves. To remove the MTD service : Login to your Business Tax Account Select Manage Account (top of the screen) Select Remove a tax duty or scheme and then follow the on screen instructions . Thank you.

 

I called helpline week ago and I was told I needed to go through the process of transfer the VAT registration number if the new owner wants to keep the same number, was that still correct? Can I skip this process?

 

Hi. If it is a Transfer of a going concern and the new owner wants to keep the same VAT number then you would need to go through this process. If you go through the deregistration process online it will give you the option to select that the VAT number is being transferred. If you don't want the new owner to have the same VAT number then you would simply deregister the VAT number via your Business Tax Account and the new owner would apply for a new VAT number through their Business Tax Account . Thank you  .

It is not a transfer of a going concern and he just wants to keep the same VAT number so he can submit VAT return immediately to claim back input tax. As you mentioned before, once I remove MTD service, he can link VAT to his gateway account and complete VAT return immediately. Can I allow this happen?

Hi Suk Poon,
Before the new owner can complete any returns HMRC need to be informed that a transfer is taking place.
Please see the guidance below:
3. Rules following a TOGC
Thank you.