If your business falls under one or more of the below then it may be time for you to deregister for VAT:

• You stop trading or making VAT taxable supplies
• Your turnover is below the threshold, which is currently £88,000
• You cease trading
• You were registered in error

You must cancel within 30 days if you stop being eligible or you might be charged a penalty.

You can cancel online but you have to cancel by post if:

• Your legal status has changed and you require a new VAT number
• You’ve sold your business and the owner is not keeping the VAT number

It usually takes 3 weeks for HMRC to confirm the cancellation and cancellation date. You must stop charging VAT from the cancellation date and you will need to keep all VAT records for 6 years. HMRC will automatically re-register you if they realise you should not have cancelled.

You will submit a final VAT return, which is due 1 month of the cancellation date and you will account for any stock and other assets you have if both of the following apply:

• You re-claimed or could have re-claimed VAT when you bought the assets
• The total VAT due on these assets is over £1,000

If you think any of the above applies to you or you are unsure, get in touch with us and we will be able to assist you.