Can a UK Company Cancel Its VAT Registration?

Yes. A UK company can cancel its VAT registration if it is no longer required to be VAT registered and meets HM Revenue & Customs (HMRC) rules for deregistration.

This is commonly known as VAT deregistration.

When Can a UK Company Cancel VAT Registration?

A company may be able to cancel its VAT registration if:

• It has stopped trading
• It has stopped making VAT-taxable supplies
• Its taxable turnover has fallen below the VAT deregistration threshold
• It registered voluntarily and now qualifies to deregister
• The business has been sold or its legal structure has changed

Whether cancellation is available depends on the company's circumstances.

How Do I Cancel VAT Registration?

A UK company can normally apply to cancel its VAT registration through its HMRC VAT online account.

HMRC will review the application and confirm the official cancellation date if it is accepted.

Do I Need to Submit a Final VAT Return?

Yes. After VAT registration is cancelled, the company will normally need to submit a final VAT return covering the period up to the cancellation date.

There may also be VAT to account for on certain stock and business assets the company still owns.

Can I Cancel Voluntary VAT Registration?

Potentially, yes.

A company that registered voluntarily may apply to deregister if it meets HMRC's requirements.

Voluntary registration does not mean the company must remain VAT registered permanently.

Can I Keep Charging VAT After Cancellation?

No.

Once VAT registration has officially ended, the company must generally stop charging VAT from the effective cancellation date.

Business invoices and accounting systems should therefore be updated accordingly.

Final Answer

Yes, a UK company can cancel its VAT registration if it meets HMRC's deregistration requirements.

You will normally need to apply to HMRC, submit a final VAT return and account for any VAT due.

Before cancelling, consider whether deregistration could affect your pricing, customers, VAT recovery and business expenses.

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