How to cancel your VAT registration
Deregistering from VAT
You can cancel your VAT registration when you cease trading, or if you expect your total sales (excluding VAT) to be no more than £81,000 in the next 12 months. This threshold goes up to £83,000 on 1st April 2017. If you are continuing to trade you need to pick a date for the deregistration to take effect. This can’t be earlier than the day when you apply to HMRC to deregister form VAT.
You can cancel your VAT registration online, or by completing a paper form VAT7 and send it to HMRC. We can help you with this. But remember once you have cancelled your VAT registration you can’t reclaim VAT incurred on purchases.