You must notify HMRC of any changes to your VAT registered business. This can include a VAT change of address, trading details, or cancelling VAT registration altogether.
HOW TO CHANGE VAT DETAILS: There are some common VAT changes that you need to report. They include the business contact information and bank details.
In fact, you can make several changes to your VAT-registered business. But, keeping the registration details up to date is a legal responsibility.
You can inform HM Revenue and Customs using one of two methods:
1. Online using your Government Gateway VAT account.
2. By post using Government Form VAT484 (e.g. to change VAT address).
If there is a change of partnership in your company, you must fill in and post the Government Form VAT2. Some changes mean you will need to cancel VAT registration altogether (see below).
You must inform HM Revenue and Customs within thirty (30) days if there are certain changes to your company. They include things like:
Note: Failing to report changes to VAT registration details within 30 days can result in financial penalties.
If you are changing banks or your current bank details, you must inform HMRC. Report it at least fourteen (14) days beforehand. If you pay your VAT by Direct Debit, remember to instruct your new or current bank.
You also need to inform the Annual Accounting Registration Unit if you use the Annual Accounting Scheme. This cannot be done online. Write to the AARU and include your registration number and Direct Debit details.
HM Revenue and Customs (Annual Accounting Registration Unit)
Imperial House, 77 Victoria Street
Grimsby DN31 1DB
Note: It is best not to request a bank change within five (5) banking days either side of your VAT return date.
If you become responsible for VAT payments of a person who has become ill or died, you need to inform HMRC. You should report this within 21 days. Fill in HMRC VAT 484 form in the section marked 'Any other changes'.
You need to include the date of death or the start of the infirmity. You cannot do this online so you need to post the form to HMRC.
You must apply to HMRC for deregistration if you become ineligible for VAT Registration. As a rule, this applies if you calculate your taxable turnover to be less than the threshold for deregistration (£83,000 for 2020).
Falling below the deregistration threshold triggers the VAT cancellation procedure. Other reasons you may need to cancel include:
You can deregister for VAT (cancel registration) using one of two ways:
Note: You have 30 days to cancel VAT with HM Revenue and Customs or you could face financial penalties.
After you apply for deregistration HMRC will reply within three (3) weeks - in most cases. They will inform you of your official deregistration and the 'date of effect'.
The date of effect is the day you voluntarily deregistered or you needed to do so because you stopped trading.
Your notice of deregistration depends on how you applied. HMRC will contact you via your online account if you made an online application. They will contact you by post if you sent the VAT7 form by mail.
You must store your VAT records for at least six (6) years no matter what reason you have for deregistering.
Note: HMRC will re-register your company if they determine that you should not have deregistered. You are liable for any sales tax payments due between your deregistration and re-registration.
You should submit a final VAT Return when you deregister. This submission should include the cancellation date. You can usually complete this using your online account.
You must account for all business stock and any assets that you have on this date, if:
You can submit your final return before you receive all your invoices. When you receive the invoices you can then reclaim value-added tax. HMRC will send you a paper version if you become insolvent and cancel the registration.
You can transfer VAT registration numbers between companies. An example could be if your business takes over another and you want to use their VAT registration.
To apply for this registration transfer you need to either:
Note: Both companies need to inform HM Revenue and Customs about the VAT registration transfer. You may need to set up new Direct Debits on your account. Remember that the transferring company may need to cancel theirs.
As a rule, HMRC will reply within three (3) weeks of the application. The following steps may be necessary once they confirm the VAT registration transfer.
You will need to cancel any existing 'self-billing arrangements' and make new agreements as required. Following this, you should consider opening a Government Gateway account to register for VAT status.
How to Change VAT Registration Details, Transfer, or Cancel in United Kingdom