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Changes to your business circumstances and your VAT registration

If your business circumstances change, then you must tell us straight away, because certain changes can affect your VAT registration, or even require you to cancel your VAT registration. In most cases, you need to tell us within 30 calendar days, or you may face a financial penalty. However, in some cases the time limit is even shorter.

This guide explains what changes in circumstances need to be reported to us, and explains the action you need to take.

Other changes in your business circumstances may mean you want to cancel your registration voluntarily. This guide explains when you might be able to apply to do this.

On this page:

Changes in names and addresses

Your VAT registration is based on the information you supplied to us when you registered. So if your business circumstances change, you should tell us straight away. Make sure you notify us within 30 calendar days, otherwise you could face a financial penalty.

You need to tell us if any of the following change:

  • the name or trading name of your business
  • the main address of your business
  • the name and/or address of any partner in the business
  • if you are an overseas company or resident, the name and/or address of the UK agent for VAT purposes

See the section later in this guide on how to tell us about changes.

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Death and illness

If you are representing someone who has died or is ill, then you have the same VAT obligations as that person. This will continue until you register for VAT, until the owner returns to the business, or until the business is passed on or closed. You must contact us within 21 calendar days of assuming this responsibility and provide details of the death or illness, and of the date it happened or began.

If you are in a partnership, and one of your partners has died, then either you or another partner must write to us within 30 calendar days of their death. You also need to do this if you and at least one other remaining partner intend to continue in business.

If you are the only surviving partner and you want to recruit a replacement partner, you must write to us within 30 calendar days of the new appointment. If you decide to continue the business as a sole proprietor, you should report this within 30 calendar days of the change taking place.

See the section later in this guide on how to tell us about changes.

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Changes to a partnership, of forming or ending a partnership

If your business is a partnership and there are any changes - a partner leaves, a new partner joins, or both - then you must let us know. You also have to tell is if the name or address of any partner in the business changes.

If you own a business and you bring in one or more business partners, then you must cancel your VAT registration. You must also cancel your registration if your partnership ceases to exist and one of the former partners becomes the sole owner of the business.

You need to tell us these changes within 30 calendar days.

See the section later in this guide on how to tell us about changes.

See our guide to cancelling your VAT registration

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Changes in the legal status of your business

You must cancel your VAT registration if there is a change in the legal status of your business.

Examples of changes in the legal status include a change from sole trader to limited company, or from limited liability to unlimited liability.

This might happen when a company is formed to take over a business previously run by a sole proprietor or group of people, such as a partnership or club. The status of your business also changes if a business previously carried on by a company is taken over by a sole proprietor or group of people.

If you change the legal status of your business, you can either cancel your existing VAT registration or ask to keep your previous number. To keep your previous number, you will need to complete form VAT 1 to apply for registration, or apply for registration online, and form VAT 68 to transfer your existing registration number. If your new business is a partnership, you will also need to complete form VAT 2. You cannot complete VAT 2 or VAT 68 online yet.

See our guide to cancelling your VAT registration

See our guide to registering for VAT online

Obtain form VAT 68 'Request for transfer of a registration number'

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Changes to the goods and services you supply

You need to tell us within 30 calendar days if your main business activity changes.

Circumstances in which you must cancel your VAT registration include the following:

  • you're registered for VAT because you supply goods and/or services that are taxable, but you stop making taxable supplies
  • you were registered because you intended to supply taxable goods and services, but this is no longer the case
  • you supplied, or intended to supply, goods and services outside the UK that would have been taxable in the UK, but this is no longer the case

You can choose to cancel your registration if your goods and services become wholly or mainly zero-rated, even if your turnover is above the annual registration threshold - currently £67,000.

If you make standard rated supplies and your turnover exceeds the annual registration limit - currently £67,000 - you can only cancel your registration if your input tax normally exceeds your output tax. When you write to us, explain why you think you should be exempt from registration.

You don't need to tell us if you start trading internationally.

See our guide to cancelling your VAT registration

See the section later in this guide on how to tell us about changes.

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A reduction in your turnover or your international trade

If your turnover drops, or the volume of goods you trade with the European Union (EU) falls, you may be entitled to voluntarily cancel your VAT registration.

See our guide to when you must register for VAT and when you may voluntarily register

A drop in turnover

You can ask us to cancel your VAT registration when your annual taxable turnover falls, or you expect it to fall in the next 12 months, below the threshold for deregistration - currently £65,000.

If you request this, you must write to us to explain the drop in your turnover. Possible reasons might include a reduction in opening times, loss of contracts or changes in your business practices. You'll have to give us your anticipated turnover for the next year.

You won't be allowed to cancel your registration if the reduction in your turnover is due to your intention to stop trading or suspend making taxable supplies for 30 days or more in the next 12 months.

A drop in distance sales

If you are based in another EU country and are engaged in distance selling to the UK, you can apply to cancel your registration if the annual value of your distance sales falls below the registration threshold for distance selling - currently £70,000. You can also apply if you no longer plan to make the UK your place of supply for distance sales.

A drop in acquisitions from other EU countries

If you are registered for VAT because you have previously gone over the threshold for making relevant acquisitions from other EC member states, then you can apply to cancel your VAT registration when the annual value of your acquisitions falls below that threshold - currently £67,000.

If you are registered because you had voluntarily registered for relevant acquisitions, you can apply to cancel your VAT registration where you will remain registered in the UK for at least two calendar years. This is unless your entitlement to be registered has ceased.

A drop in supplies to other EU countries

If you are registered in the UK because you make relevant supplies, you can apply to cancel your registration if you only intend to make further relevant supplies that are wholly zero-rated.

How to cancel your VAT registration

Until your registration is cancelled, you'll have to carry on charging, and accounting for, VAT. We may refuse your request for voluntary deregistration, in which case you'll have to carry on charging, and accounting for, VAT.

See our guide to cancelling your VAT registration

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Changes to your bank details

It's very important to let us know as soon as your bank details change, because we use these details to make repayments to you. You can do this using VAT online services.

If you pay your VAT by direct debit, you'll also have to change your direct debit instruction. You need to do this via your bank, who will automatically advise us of any changes. However, you shouldn't change your details within five banking days either side of your VAT return due date, as it may mean we can't collect your payment. If that happens and the payment is late, you'll be liable to a surcharge.

If you use the Annual Accounting Scheme and you change your bank account number, sort code or Girobank account number, then this will affect your direct debit arrangements for your payments under the scheme. You must tell your bank and write to the VAT Central Unit Annual Accounting Team at the following address, quoting your registration number and providing your new account details:

HM Revenue & Customs
Annual Accounting Team
Deansgate
62-70 Tettenhall Road
Wolverhampton
WV1 4TZ

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Changes to a VAT group

If you want to change the composition of a VAT group, you should apply to us straight away. If you don't apply to include an extra member in the VAT group at the right time, you might not be able to obtain a period of retrospection. You must also write to us if you no longer meet the criteria for divisional registration. If you don't, divisional registration may be cancelled and you may be restricted to a single registration.

If you are part of a VAT group and the group is disbanded, the group's registration will be cancelled. If you still need to be registered for VAT, you will need to re-register.

See our guide to registering a VAT group

Closing or selling a business

If you close or sell your business, you have to cancel your VAT registration.

Read our guide on closing or selling your business and your VAT registration

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How to tell us about changes

When you tell us, make sure you quote your VAT registration number, and tell us the date when the change took place.

You can notify us online about changes to your bank account details, and most other details.

You cannot notify us about changes to membership of VAT groups using VAT online services. For these, you need to obtain form VAT 50 or VAT 51.

Alternatively, you can write to our National Registration Service. If you do this, please use our form to record your changes.

Get the Change of Details - Variations form

Grimsby National Registration Service
HM Revenue & Customs
Imperial House
77 Victoria Street
Grimsby
DN31 1DB

If you are not based in the UK and you need to tell us about a change, you should write to us at:

Non Established Taxable Persons Unit (NETPU)
HM Revenue & Customs
Ruby House
8 Ruby Place
Aberdeen
AB10 1ZP

Access or register for VAT online services

Obtain form VAT 50 'Application for VAT Group Treatment'

Obtain form VAT 51 'Application for VAT Group Treatment - Company Details'

Find answers to frequently asked questions about changing your details online

Read the terms and conditions that apply to changing your registration details online

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