Project Description

The VAT de-registration method is an irreversible process, therefore choosing the proper time to submit your application is vital to avoiding expensive mistakes. Here we tend to not only walk you through to apply for VAT de-registration but conjointly explore the pros and cons for doing so. Our team will be able to assist you to pick the optimum time to get VAT deregistered.
VAT De-registration may be done online or by post and, in several cases, is sort of an easy method. However, what some business owners overlook is that remaining voluntarily VAT registered might be useful and selecting the incorrect date for VAT de-registration might mean they will lose out on claiming back VAT, or maybe need to pay HMRC.
VAT De-registration

Why de-register?

De-registration is generally a reasonably easy method, but there are some vital aspects that have to be considered. Otherwise, this might prove very expensive.

A business should de-register if:

  • it stops creating taxable necessities and has no intention to create them within the forthcoming period
  • the legal entity changes
  • the business is sold
  • it is the member of a group registration, but the group is to be disbanded
  • it is a corporate body and wants to accompany a group registration

Take advice

It might look an obvious call to make a provision for future by de-registering for VAT, however, if your turnover falls below the limit, caution is well-considered and before you continue you need to get a professional advice.

There might also be a way to reduce the costs related to de-registering, like reducing VAT due on deemed supplies of any assets the business owns by running down stock and waiting out the CGS period.

If you would like to discuss VAT in more detail, please contact us today.