Value Added Tax (VAT) is a significant part of the tax system in the United Kingdom. Businesses must register for VAT if their turnover exceeds the threshold set by HM Revenue and Customs (HMRC), which is currently £90,000. However, there are circumstances when a business might want or need to deregister for VAT. This guide will walk you through the process, the reasons for deregistration, and the implications of doing so.
Reasons for deregistering from VAT include falling below the VAT threshold, changes in business structure, and ceasing to trade. You can apply for VAT deregistration immediately if you expect that your sales will not exceed the deregistration threshold of £88,000 in the next 12 months. It’s important to maintain accurate records to support your application.
Source Taxually
