Registration and Deregistration Thresholds

HMRC have issued a new version of VAT Notice 700/11: ‘Cancelling your registration’. It contains more detailed information on how to cancel your VAT registration using the online service.

Interestingly, the supplement to the Notice has the old registration and deregistration limits! The current threshold for registration is shown as £82,000 and for deregistration as £80,000. Both have increased by £1,000 to £83,000 and £81,000 respectively, with effect from 1 April 2016.

A point worth noting regarding compulsory registration: if a business becomes liable to register because the turnover has exceeded £83,000 over the past 12 months then provided they can demonstrate that the turnover will not exceed the deregistration limit (£81,000 in the forthcoming 12 months) they can apply for an exception to VAT registration.