You must notify HMRC of any changes to your VAT registered business. This can include a VAT change of address, trading details, and cancelling VAT registration altogether.
HOW TO CHANGE VAT DETAILS: Common VAT changes you need to report include business contact information and bank details.
It is a legal responsibility to keep details of your registration up-to-date.
You can inform HM Revenue and Customs using one of two methods:
1. Online using your Government Gateway VAT account.
2. By post using the 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. Certain changes mean you will need to cancel VAT registration altogether.
You must inform HM Revenue and Customs when there are changes to your company such as:
Note: Failing to report changes to VAT registration details within 30 days can result in financial penalties.
HMRC VAT Change Bank Account Details
If you are changing banks or your current bank details, you must inform HMRC. You should report this at least 14 days beforehand. If you pay your VAT by Direct Debit, remember to instruct your new or current bank.
Note: Do not request the change within 5 banking days either side of your VAT return date.
You also need to inform the Annual Accounting Registration Unit if you are using the Annual Accounting Scheme. Include your registration number and Direct Debit details. You cannot do this online. You will need to write to them at HMRC AARU.
VAT 484 Form: Registration for Death and Illness
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 VAT484 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 de-registration if you become ineligible for VAT Registration. The taxable turnover threshold for de-registration 2018 is £83,000.
Falling below the de-registration threshold triggers the VAT cancellation procedure. Other reasons you may need to cancel include;
Note: You have 30 days to cancel VAT with HM Revenue and Customs or you could face financial penalties.
You can cancel your registration using one of two ways:
After you apply for de-registration HMRC reply within three (3) weeks in most cases. They will inform you of your official de-registration and the 'date of effect'.
This date is the day you voluntarily de-registered or needed to do so because you stopped trading.
Your notice of de-registration 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 6 years no matter what reason you have for de-registering.
Note: HMRC will re-register your company if they determine that you should not have de-registered. You are liable for any sales tax payments due between your de-registration and re-registration.
You should submit a final VAT Return when you de-register. This submission should include the cancellation date. You can usually complete this using your online account.
You must account for all business stock and assets for 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 reply within 3 weeks of your application. The following steps may be necessary once they confirm the VAT registration transfer.
How to Change VAT Details: Transferring or Cancelling VAT Registration in the United Kingdom