HMRC has published an updated version of form VAT7 for cancelling a VAT registration. The old PDF version of the form has been replaced with a print and post iForm version.
A compulsory VAT deregistration is usually required where a VAT registered business:
- Stops making taxable supplies
- Sells a business
- Changes legal status
- Disbands a VAT group
- Joins a VAT group
- Joins the agricultural flat rate scheme
A voluntary deregistration usually relates to businesses that do not expect taxable turnover to exceed the deregistration limit. The VAT deregistration threshold is currently £83,000.
A business that deregisters is able to make late claims for input tax on services received whilst it was VAT registered (subject to the usual VAT time limits).