Andrew Needham looks at some issues that can affect businesses when they deregister for VAT.
A business can deregister for VAT if its turnover falls below the deregistration threshold, which is currently £83,000 per annum. If the taxable turnover in the previous 12 months is below this limit, the business can deregister for VAT, but it can also deregister if it can persuade HMRC that its taxable turnover in the next 12 months will be below the deregistration limit.
Businesses can now also deregister using HMRC’s online system.
When to deregister for VAT
If a business wants to deregister, it is advised to do so promptly. Deregistration will only be backdated if a business has ceased to be entitled to registration because, for,
