How to Close Your VAT Number: A Comprehensive Guide

VAT (Value Added Tax) is a complex and significant aspect of the UK business landscape. If you're running a business, you might find yourself in a situation where you need to close your VAT number. Whether you're primarily registered online or prefer the traditional post method, this article will walk you through the steps and provide clarity and guidance on the process. By the end of this guide, you'll be fully equipped to either deregister online or submit the necessary form via post.

Why Might You Need to Deregister for VAT?

There might be several reasons to deregister for VAT. The most common ones include:

You've ceased trading Your turnover is below the VAT threshold You want to opt for Flat Rate Scheme instead Your business is going through liquidation You are a Limited Company and you've switched to a sole trading entity, or vice versa

Online VAT Registration Process

If you're currently registered for VAT and want to deregister through the online method, you can follow these steps:

Step 1: Log into Your Government Gateway Account

The first step is to log in to your Government Gateway account, which serves as your primary VAT account. You can access it using the following URL: If you don't have an account yet, you'll need to create one.

Note: To ensure the security of your account, make sure to use a strong and unique password. It's also crucial to keep a record of your log-in details in case you need to access your account in the future.

Step 2: Navigate to the Deregistration Section

Once logged in, navigate to the section dedicated to VAT deregistration. This process is streamlined and user-friendly. Follow the prompts carefully to proceed:

Select the appropriate reason for deregistration. Confirm your decision to send the application electronically. Provide the necessary details, including your VAT identification number and any required documentation. Review and submit your application. Confirm the submission and keep a record of the confirmation number for future reference.

Submitting Form VAT7 for VAT Deregistration

If you prefer to deregister for VAT through the post method, you'll need to complete and send the Form VAT7. Here's a detailed guide on how to do so:

Step 1: Obtain or Complete Form VAT7

Form VAT7 is the official document that facilitates the deregistration process through the post method. You can download this form from the HMRC website:

Step 2: Fill in the Form

Write the name and VAT number of the business you are deregistering from. State the reason for deregistration. Provide your address and contact details. Make sure all details are correct and complete.

Step 3: Gather Necessary Documents

Along with Form VAT7, you might need to include additional documents such as:

A letter stating that you are ceasing trading Proof of cease trading, such as a notice to customers, employee releases, or articles of administration (if your business is in liquidation)

Step 4: Send the Form via Post

Once your form is completed and any required documents are enclosed, address and post it to the following address:

HM Revenue and Customs

VAT Deregistration
PO Box 1347
Cardenden
Fairfield Park
KC11 9YQ

Step 5: Await Confirmation

After sending the form, it will take a few weeks for HMRC to process your request. You'll receive a confirmation letter once the process is complete. It's also a good idea to keep a record of the date you posted the form, just in case you don't receive confirmation within the expected timeframe.

Frequently Asked Questions (FAQs)

Q: I'm still in the process of ceasing trading. Is it too early to deregister?
A: No, it's not too early. As long as you're in the final stages of ceasing trading, you can proceed with the deregistration process. It's essential to ensure that your business is properly shut down before finalizing the deregistration.

Q: Can I re-register for VAT after deregistering?
A: Yes, you can re-register for VAT if your business regains trading profits, even if they are below the VAT threshold. You'll need to provide a business reason for re-registration and send a request to HMRC.

Q: What happens if I accidentally submit a deregistration request electronically and later decide to change my mind?
A: If you realize you've made a mistake and want to re-register, you can contact HMRC immediately to request a review of your case. Be prepared to provide documentation to support your decision to re-register.

Conclusion

Managing your VAT registration process is crucial for maintaining your business's legal and financial compliance. Whether you choose to deregister online or via the post method, ensuring you follow the correct procedures is vital. By understanding both methods and their respective advantages, you can ensure a smooth and trouble-free process. Remember, if you have any doubts or specific requirements, always consult with a professional before proceeding.