VAT threshold 2011

VAT deregistration

VAT deregistration is needed in case your firm doesn’t make £73,000 (from April 1 2011) turnover. Some proprietors want to cancel VAT registration voluntarily. To cancel VAT first of all you have to inform HM Revenue & Customs (HMRC) about this and explain your reason in details. But remember that you have to do this within 30 days of the reason for VAT cancelling.

You have to write your request and explanation within this term and if not, you’ll be fined.

There exists a special form called VAT 7. If you fill this up and send it to HMRC you’ll cancel your Vat registration too. This organization is obliged to send you a special response (a formal notice of cancellation - form VAT 35 or a formal notice of exemption from registration - form VAT 8). If you don’t get one within 3 weeks from the date of sending, you have to contact them on your own. You have to save all these forms as VAT records for six years.

When the process of VAT deregistration is over, you don’t have to add VAT on the price of your goods or fill in VAT invoices.