Cancel VAT

Value Added Tax is also well known by its abbreviation VAT by many UK businesses and professional accountants.

Many new businesses when starting up opt to register for VAT for the reasons that they can claim back VAT paid on business expenses and also taxable sales are likely to exceed the VAT registration threshold in the first year of business.

You can request HM Revenue and Customs (HMRC) to cancel your VAT registration status if you foresee your business taxable sales are going to be under the VAT deregistration limit in the next 12 months of trading. The limit is currently set at £66,000.

When working out your taxable sales to determine whether you are eligible to deregister for VAT, the sales amount should exclude VAT. If you are eligible to deregister for VAT, you must submit the Form VAT7 to HMRC and giving the reasons for deregistration.

The form VAT7 is to be sent to the following HMRC office:

Grimsby National Registration Service
HM Revenue and Customs
Imperial House
77 Victoria Street
Grimsby
DN31 1DB

For VAT registered businesses based outside UK, the VAT7 form should be sent to:

Non Established Taxable Persons Unit (NETPU)
HM Revenue and Customs
Ruby House
Aberdeen
AB10 1ZP

If HMRC accepts your deregistration application, they will send you a confirmation of deregistration and the final VAT return (Form VAT193) to complete.

If in circumstances where the period covered in the VAT193 will duplicate a previously submitted VAT return (VAT100), you must exclude any VAT on this return that has already been declared on a previous return.

You must complete the final VAT return form even if you have nothing to declare; in this case you just send HMRC a nil return.

The final VAT return (VAT193) should be returned to:

VAT Controller
VAT Central Unit
BX5 5AT

Concise Accountancy provides VAT deregistration services. Our accountants will handle your VAT deregistration process from start to finish. This will free you up to concentrate on your business.

Concise Accountancy – Accountants for business startup and small companies