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Friday 24th October 2008 Blog
Deregistering for VAT
Where a clients sales have fallen off drastically in a period it may be a case that their customers are getting more price sensitive in this current climate. They may ask you whether they can deregister for VAT and so effectively drop their prices. Is this possible? Well, if their total sales for the last 12 months have been less than £65,000, and they expect them to stay below this threshold for the next 12 months they can ask HMRC to cancel their VAT registration.
This is not an automatic process and the VAT office may not grant them permission to escape the VAT net. They need to complete form VAT 7, which can be downloaded from the HMRC website, and give some convincing reasons on that form why their turnover is unlikely to rise about the compulsory VAT registration limit (£67,000) in the foreseeable future
Posted by: Bookcert Mentoring Team
Friday 24th October 2008
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