Thinking of de-registering VAT? – Accounts Navigator Associates

Accounts Navigator

Due to the current climate some businesses turnover has decreased and is therefore now below the VAT registration threshold (£85,000). This means that you can essentially de-register for VAT but this is optional.

Here are some Advantages and Disadvantages for de-registering for VAT

If you buy significant amounts of goods and services that include a VAT charge, then if you de-register you will not be able to recover any VAT charged.

If most of your sales are zero-rated or most of your customers are registered for VAT and can recover the VAT you charge, de-registering means you will lose any recovery of input VAT on purchases and your customers will gain no advantage.

If, however, you sell to the general public who cannot reclaim the VAT you charge, and if the VAT on your purchases is not significant, then de-registering could provide an opportunity to reduce your prices and regain a competitive advantage.

If you require any assistance or have any further questions on VAT de-registration then please do not hesitate to contact us.

This article is copyright © 2023