From: Jonathan Bryce 
Subject: Re: Vat treatment of a high cost start-up (not for profit)
Newsgroups: uk.business.accountancy uk.finance
Date: Fri, 04 Jul 2003 20:40:43 +0100

Derek wrote:

> You might have some difficulty with HMC&E if you start choosing to
> register /de-register as the wind blows, claiming back your input VAT on
> your purchases (of substantial hardware items, say) in the quarters you
> are VAT registered but not chargeing VAT in the quarters you are not VAT
> registered.
> 
> I don't know the law on this but I'm 100% sure HMC&E have it covered.  :-)

When you deregister, you have to pay the VAT on any equipment you have at
the time back to them.