For the first time in seven years, HMRC have increased both the registration and deregistration thresholds for VAT.
From 1st April 2024, the 12-month taxable turnover threshold which determines whether a person must register for VAT has increased from £85,000 to £90,000. The threshold for deregistration has increased from £83,000 to £88,000. This will allow businesses to continue to trade without the additional administrative and financial cost of dealing with VAT.
Registering or deregistering for VAT involves specific procedures. To register for VAT, businesses exceeding the new £90,000 threshold within a 12-month rolling period must submit an online application through HMRC’s portal. Conversely, for those considering deregistration due to falling below the £88,000 threshold, a formal request must be made to HMRC, outlining the reasons for the deregistration. Staying informed about these processes is crucial to ensure compliance and avoid potential penalties.
Should you have any queries please do not hesitate to contact your usual Drummond Laurie contact or contact us at hello@drummondlaurie.co.uk