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Registering and Unregistering for VAT - Fleximize

Registering and Unregistering for VAT

Find out how to register or cancel VAT in the UK, when to use the VAT 7 form, and what to check before deregistering to avoid unexpected VAT bills.

By Kate Josselyn

If you run a UK business, there may come a point where you need to register for VAT, cancel your registration, or re-register after a period below the threshold.

This guide explains:

How to register for VAT

You must register for VAT if your taxable turnover exceeds the current VAT registration threshold (currently £90,000 in a 12-month rolling period). You can also register voluntarily if your turnover is below this level.

What you’ll need to register

Before applying, gather:

Most businesses register online through their HMRC Government Gateway account. In some cases, registration can be completed by post using a VAT1 form.

If you're registering a partnership, you’ll also need to provide details of each partner with a VAT2.

What happens after you apply?

HMRC will issue a VAT registration certificate, usually within 30 working days (complex cases can take longer).

This confirms:

You must charge VAT from your effective registration date, even if you’re still waiting for confirmation.

How to deregister for VAT (cancelling your registration)

You must cancel if:

You may also be able to do this voluntarily if your turnover falls below the VAT deregistration threshold (currently £88,000).

How to cancel VAT registration online

  1. Log into your HMRC VAT online account.
  2. Go to ‘Change registration details’.
  3. Choose ‘Cancel VAT registration’.
  4. Choose your reason for deregistering.
  5. Submit your request alongside a final VAT return.

You must notify HMRC within 30 days of becoming ineligible to remain VAT registered.

HMRC will usually confirm your deregistration within around 3 weeks, but some cases can take longer.

Your VAT account will show your official cancellation date.

Can I unregister for VAT voluntarily?

Yes. If your taxable turnover drops below £88,000, you can apply to deregister voluntarily.

Businesses often choose to deregister because:

However, you should consider:

Deregistering isn’t always the right decision – especially if you expect rapid growth.

Using the VAT 7 form to cancel by post

While most cancellations can be done online, you must use the VAT 7 form in certain situations.

When do you need the VAT 7 form?

You may need to submit the VAT 7 form by post if:

The VAT 7 form is available via GOV.UK and can be completed manually.

Where do you send the VAT 7 form?

The postal address is listed on the form itself and may vary depending on your situation. Always check the most recent version before submitting.

Processing times are typically longer when applying by post.

The “VAT trap”: What you must do before deregistering

One of the most overlooked parts of VAT deregistration is what’s sometimes called the “VAT Trap”.

When you cancel your VAT registration, you may need to account for VAT on:

If the VAT due on these items exceeds £1,000, you must include it on your final VAT return.

This applies even if you originally reclaimed VAT when purchasing those items.

Failing to account for this can result in unexpected liabilities.

You must also:

This record-keeping requirement often catches businesses off guard.

How to re-register for VAT

Businesses commonly deregister when turnover falls, then find themselves needing to re-register once sales recover.

When must you re-register?

You must register again if:

You must apply within 30 days of crossing the threshold.

How to re-register for VAT

The process is similar to your original registration:

  1. Log into Government Gateway.
  2. Submit a new VAT registration application.
  3. Provide updated turnover details.
  4. Await confirmation.

HMRC will issue a new VAT number if required (sometimes your previous number can be reactivated).

Things to consider before re-registering

Re-registration often signals business growth, but it can also tighten working capital.

Managing cash flow through VAT changes

Registering, deregistering, or re-registering for VAT can all affect your cash flow.

For example:

VAT changes often happen during periods of:

These transitions can temporarily tighten cash flow.

A working capital loan can help bridge that gap – whether you’re scaling up after re-registering or stabilising after cancelling your VAT registration.

At Fleximize, we provide business loans from £5,000 to £500,000 with fixed monthly repayments and fast decisions. That means you can manage VAT transitions without disrupting day-to-day operations.

If VAT changes are impacting your cash flow, you can check your eligibility and receive a personalised quote today. Apply now to see your options.

Final thoughts

Whether you need to register for VAT, deregister for VAT, cancel your VAT registration, or re-register after a dip in turnover, the key is acting quickly and understanding the financial impact.

Remember:

Don’t mistake VAT registration for just another administrative task – it can directly affect your business finances.

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