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Making Tax Digital

I've deregistered for VAT, what should I do now?

When it's time to cancel your VAT registration, you'll need to be sure you follow the HMRC guidance on what happens next.

It usually takes 3 weeks for HMRC to confirm your cancellation and the official cancellation date. This is either the date when the reason for your cancellation took effect (for example, when you stopped trading), or the date you asked to cancel.

HMRC will send confirmation to your VAT online account or through the post if you do not apply online.

You must stop charging VAT from the cancellation date. You’ll need to keep all VAT records for 6 years.

HMRC will automatically re-register you if they realise you should not have cancelled. You’ll have to account for any VAT you should have paid in the meantime.

VAT after you cancel
You’ll have to submit a final VAT Return for the period up to and including the cancellation date.

You must account for any stock and other assets you have on this date if both of the following apply:

  • you reclaimed or could have reclaimed VAT when you bought the assets
  • the total VAT due on these assets is over £1,000

You must submit your final return within one month of the cancellation date, unless you are on the Cash Accounting Scheme.

If you’re on the Cash Accounting Scheme, submit your final return within 2 months of the cancellation date.

Do not wait until you’ve received all your invoices before submitting your final return. When you get them you’ll still be able to reclaim VAT.

Read more: Register for VAT - Cancel your registration

Once cancelled, your MTDsorted account will remain open. We do not automatically close your account.

How do I close my MTDsorted account?

Posted 1 month ago
Last updated 3 weeks ago