Deregistering for VAT

Need advice? We can help.Get in touch today

A voluntary VAT deregistration can be made if you do not expect your taxable turnover to exceed the VAT deregistration limit. The current deregistration limit is £83,000.

If you are running a small business that has been adversely affected by the Coronavirus pandemic, this could be an opportune time to consider whether or not to voluntarily deregister. The deregistration cannot be backdated and must be from a current or future date where you expect sales in the next 12 months to be less than £83,000.

A compulsory VAT deregistration is usually required if you:

  • Stop making taxable supplies
  • Sell your business
  • Change legal status
  • Disband a VAT group
  • Join a VAT group
  • Join the agricultural flat rate scheme

You will be required to submit a final VAT Return for the period up to and including the VAT deregistration date.

If you are considering voluntarily cancelling your VAT registration, there are a number of issues that must be considered. Whether or not this is a good idea depends on your specific circumstances. We would be happy to help you consider your options.

If you mainly sell goods or services to individuals who have not been able to reclaim the VAT you charge, deregistration may help you to restore a competitive advantage.

 

Useful information for Deregistering for VAT

IndividualsLimited CompaniesSole Trader or Partnership

The Chancellor of the Exchequer, Rishi Sunak, delivered his Spring Statement on Wednesday 23 March 2022. Here is an outline the key measures affecting

Read more
IndividualsLimited CompaniesSole Trader or Partnership

This month we are asking our tax and accounts managers to share their top tips for saving tax as the 2021/22 tax year draws

Read more
Limited CompaniesSole Trader or Partnership

A company might have a great product or service but without a business growth strategy to help it define, articulate and communicate where it

Read more
IndividualsLimited CompaniesSole Trader or Partnership

Throughout the last two years, many small business owners have faced the economic uncertainties accompanying an international pandemic. However, while many companies are struggling

Read more
wave

I am a...