HMRC has published an updated version of VAT Notice 700/11: cancelling your registration. The notice has recently been updated to show current and previous rates for VAT limits and thresholds for taxable supplies and registration cancellation.
A compulsory VAT deregistration is usually required where a VAT registered business:
- Stops making taxable supplies or relevant acquisitions if the business is based in Northern Ireland
- Sells a business
- Changes legal status
- Disbands a VAT group
- Joins a VAT group
- Joins the agricultural flat rate scheme
A voluntary deregistration usually relates to businesses that do not expect taxable turnover to exceed the deregistration limit. The VAT deregistration threshold increased to £88,000 on 1 April 2024.
A business that deregisters is able to make late claims for input tax on services received whilst it was VAT registered (subject to the usual time limits)..
For all things VAT get in contact with our accounts department who will be able to assist.