You can de-register for VAT online, or you can submit a VAT7 form to HMRC through the post to cancel your VAT registration.

Do I need to cancel my VAT registration?

Businesses evolve and change over time, so it may sometimes be necessary to de-register your VAT. If your business stops trading or no longer deals with VAT taxable items, then cancelling your VAT registration is a requirement.

You can also choose to cancel your registration if your turnover is less than the £88,000 de-registration threshold, although it’s sometimes beneficial for a business to be VAT registered.

When should I tell HMRC to cancel my VAT registration?

You must tell HMRC that you need to de-register for VAT within 30 days of becoming ineligible. HMRC are just as strict about de-registering for VAT as they are about registration! Failing to comply with the 30 day VAT de-registration deadline might result in a penalty.

Can I reclaim VAT if I cancel my registration?

Yes, you can reclaim the VAT you incurred whilst registered after you deregister, but just be aware that there are time limits on how long you can leave it before claiming. Complete a VAT427 form to reclaim VAT after you de-register.

 
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