VAT deregistration strategy

If you are presently registered for VAT but your turnover has dropped below £83,000 you could deregister for VAT. However, you do not have to deregister.

Disadvantages and advantages of deregistration

  • If you buy significant amounts of goods and services that include a VAT charge, then if you deregister 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, deregistering 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 deregistering could provide an opportunity to reduce your prices and regain a competitive advantage.

The process of deregistration is quite straightforward, but it is worth considering any knock-on effects before taking this option. Please call as we can help you crunch the necessary numbers.

Share:

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
Accounting in Sheffield and Doncaster Certificates

Recently Added News

Why go digital?

There is a major advantage to recording business transactions digitally; once the basic data has been entered it can be interrogated and represented in endless

Read More »

Related News

The end is nigh

In just three short months the present tax year – 2020-21 – will end midnight, 5th April 2021. The UK’s tax code is predominantly time

Scammers posing as HMRC

We already have more than our fair share of adversity to deal with at present, don’t let criminals add to your woes by defrauding you

Quick Links

Online References...
Client Testimonials
Meet the Team

Sheffield Office:
2 President Buildings,
Savile Street East,
Sheffield ,
South Yorkshire,
S4 7UQ

Telephone:
0114 272 0306
Fax:
0114 272 6158
email:
sheffield@roystonparkin.co.uk

Opening Hours:

Mon-Wed: 8.30am – 5pm
Thursday: 8.30am – 7pm
Friday: 8.30am – 2pm

Doncaster Office:
3 Railway Court,
Ten Pound Walk,
Doncaster,
South Yorkshire,
DN4 5FB

Telephone:
01302 320444 / 304440
Fax:
01302 342604
email:
doncaster@roystonparkin.co.uk

Opening Hours:

Mon-Thurs: 9am – 5pm
Friday: 9am – 4.30pm