Anyone cancelled their VAT registration?

jay852

Has anyone done this and was it a simple process or did you have difficulties?

Business is thinking about cancelling as turnover is WAY below compulsory threshold for registration and reducing. Been registered for years.

Thanks

J_B

I asked our accountant about doing this, a sort of tentative enquiry.

Next thing I knew he'd done it!

No repercussions, but it was just before Covid so maybe HMRC had bigger things to worry about!

martindow

I deregistered and like J_B found it very straightforward.  This was about 15 years ago and I think I just phoned them.  I had some stock in hand and they did not require me to repay the VAT on this which was accounted for on previous VAT returns.  Apparently under a certain sum (£1000 I think) the VAT is written off which was an unexpected bonus.

Of course, things might be very different now ...

martindow

Just had a quick google.  It looks as if HMRC have quite a bit of information online - this looks like a good starting point

https://www.gov.uk/government/publications/vat-notice-70011-cancelling-your-registration

Good luck!

tightauldgit

Yes, it's easy enough to do online I believe. 

jay852

Thanks for your replies. Did any of you have any negative reactions from customers? e.g. thinking your business was in trouble? Overall perception of your business?

MatyMoo

My plumber did this when he lost his only member of staff. He could then only take on smaller jobs by himself. I was quite happy as I understood what he had done it. 

Peter999_2

I de-registered a couple of years ago and it was really easy - no problems at all.      As people say, it makes it a lot cheaper for my customers.

tightauldgit

jay852 said:

Thanks for your replies. Did any of you have any negative reactions from customers? e.g. thinking your business was in trouble? Overall perception of your business?

I don't think anyone noticed for me but I was in retail. If it was B2B then I think people kind of expect suppliers to be VAT registered and provide a VAT receipt.

jay852

tightauldgit said:

jay852 said:

Thanks for your replies. Did any of you have any negative reactions from customers? e.g. thinking your business was in trouble? Overall perception of your business?

I don't think anyone noticed for me but I was in retail. If it was B2B then I think people kind of expect suppliers to be VAT registered and provide a VAT receipt.

Exactly what I'm concerned about - this is B2B. Repeat customers as well, who will definitely notice the change.

Anyone here done it?

martindow

jay852 said:

tightauldgit said:

jay852 said:

Thanks for your replies. Did any of you have any negative reactions from customers? e.g. thinking your business was in trouble? Overall perception of your business?

I don't think anyone noticed for me but I was in retail. If it was B2B then I think people kind of expect suppliers to be VAT registered and provide a VAT receipt.

Exactly what I'm concerned about - this is B2B. Repeat customers as well, who will definitely notice the change.

Anyone here done it?

If your customers are VAT registered themselves then you may well be better staying registered even though your beneath the threshhold so you can set off the VAT on your expenses against the VAT you collect.  It is only where customers are private individuals where there can be an advantage in not having to add VAT to their bills.