# VAT Deregistration Services in Kent

> Whether your turnover has dropped, you are closing down or the business is changing hands, cancelling VAT registration needs care. We check whether you must or can deregister, deal with HMRC and prepare your final return.

## When you can or must deregister

 

There are two situations. You **must** cancel your registration if you stop being eligible, for example because you stop trading, sell the business or stop making taxable supplies. In that case you need to tell HMRC within 30 days or risk a penalty. You **can** ask to cancel voluntarily if your taxable turnover falls below the deregistration threshold, currently £88,000.

 

Voluntary deregistration is not always the right choice. Losing the ability to reclaim VAT on costs, or making your prices look different to business customers, can outweigh the saving. We look at the numbers before you decide.

 

Timing matters too. Until HMRC confirms the cancellation you must keep charging VAT, keeping records and filing returns. HMRC says it will usually confirm within 40 working days, though it can take longer, so plan ahead if you are closing on a particular date or selling the business.

 

## The final VAT return

 

After cancellation you submit a final return covering the period up to and including the cancellation date. This is where mistakes are common. You must account for VAT on stock and other assets you hold at that date if you reclaimed, or could have reclaimed, VAT when you bought them and the total VAT due on them is over £1,000. Vans, equipment, tools and unsold stock all need to be valued. You also need to keep your VAT records for 6 years. GOV.UK sets this out in its guidance on [cancelling your VAT registration](https://www.gov.uk/register-for-vat/cancel-your-registration).

 

## How we handle it

 
1. We confirm whether deregistration is compulsory or optional and compare the effect on your prices and costs.
2. We agree the right cancellation date and submit the request to HMRC on your behalf.
3. We value stock and assets on hand and work out whether VAT is due on them.
4. We prepare and submit the final return and settle any outstanding periods.
5. We update your bookkeeping software and invoice templates so VAT stops being charged from the right date.

 

## Selling or transferring a business

 

If you are selling the business as a going concern, the buyer may be able to take over your VAT number, and the transfer of assets may be outside the scope of VAT. The conditions are strict, so speak to us before contracts are signed. If you are closing a company altogether, deregistration usually sits alongside [company strike-off](https://kentaccountants.co.uk/services/company-strike-off/). Sole traders closing down should also plan their final [Self Assessment tax return](https://kentaccountants.co.uk/services/self-assessment-tax-returns/).

 

## What we'll need from you

 
- Your VAT number and recent [VAT returns](https://kentaccountants.co.uk/services/vat-registration-returns/).
- The reason for cancelling and the date trading changed or stopped.
- A list of stock and business assets, with approximate values.

 

## Deregistration for Kent businesses

 

We help sole traders, partnerships and companies across Kent close down their VAT affairs tidily, including those retiring or moving away. [Send us a message](https://kentaccountants.co.uk/contact/) and we will tell you what is needed.

## Frequently asked questions

**Q: How long does HMRC take to cancel a VAT registration?**

HMRC says it will usually contact you to confirm the cancellation within 40 working days, though it can take longer at busy times. You must keep charging VAT and keeping records until the cancellation is confirmed, so we plan the timing to avoid gaps.

**Q: Do I pay VAT on stock and equipment when I deregister?**

You may do. If you reclaimed, or could have reclaimed, VAT on stock and assets you still hold, and the VAT due on them totals more than £1,000, it must be accounted for on your final return. We value the items carefully, because the figure is based on their current value, not what you paid.

**Q: Should I deregister just because my turnover has dropped?**

Not necessarily. If most of your customers are VAT registered, they can reclaim the VAT you charge, so deregistering may not make you cheaper for them, while you lose the right to reclaim VAT on your own costs. We compare both positions before you decide.

**Q: Can I re-register later if turnover rises again?**

Yes. If your taxable turnover goes over the registration threshold again, you must register, and you can also register voluntarily. We keep an eye on your turnover so you know if you are getting close and register on time.

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Source: https://kentaccountants.co.uk/services/vat-deregistration/
Contact: hello@kentaccountants.co.uk