It’s good practice to step back and review your business at least once a year. Ask yourself where you expect your sales to come from in the next twelve
months. If your projected annual turnover is less than £81,000 (excluding VAT), you may want to consider cancelling your registration.
To do this, pick a date from which the deregistration will take effect, such as the last day of the month or quarter. This can’t be any earlier than the day on which you apply to HMRC to deregister. You won’t be able to reclaim VAT on anything you buy after the deregistration date, so it pays to plan the date carefully.
If you have ceased to trade, you can deregister from the day you stopped trading, even if that was before you told HMRC.
You can cancel your VAT registration online, or by completing a form VAT7, which needs to be signed and posted to HMRC. We can help you with this.
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