VAT deregistration and VAT registration doesn’t have to be a source of worry. When you come to Dyer for your accountant services, we offer expert and impartial advice for your business requirements. We take the time to explain the intricacies of the VAT system, so that you fully understand the VAT system and you can be sure that all the systems in place in your business are supportive of the VAT system. We can advise you on the most effective time to deal with your VAT deregistration or registration.

VAT registration becomes a legal requirement when your turnover exceeds £83,000 in a trading year. If your turnover falls below £81,000 it is then possible to begin the VAT deregistration process. With Dyer we can walk you through every step in both processes ensuring that you remain fully compliant and legal at all times.

Once you are VAT registered you must charge VAT on all outgoing invoices, unless you are selling goods that are rated at 0% VAT, for example books. You are then in the position to claim your VAT back on all items that you have bought in. You must furthermore file your VAT return in a timely manner and pay any monies due to HMRC.

You can be VAT registered as either a sole trader or a limited company. There is no difference other than if you make an error on your VAT return as a sole trader you are personally liable, if you make an error as a limited company the error is transferrable to the directors. This is one of the reasons why it is sensible to use a chartered accountant to file your VAT return. This way you can rest assured that the paperwork is dealt with in a professional, accurate and timely manner, leaving you free to concentrate on running your business and maximising your profits.

VAT registration doesn’t have a fixed charge. It can prove to be more expensive due to increased time and costs associated with the paperwork side of VAT. It can, however, be a valid and intelligent business decision to make in plenty of time ahead of your business being legally required to become VAT registered. It is always advisable to speak to a trusted professional such as a chartered accountant or a business advisor to understand the implications of any actions that you may be considering. While it is possible to become VAT registered voluntarily, and then to deregister, the inherent cost of processing these changes must be considered before any such action is taken.


To discuss your VAT registration or deregistration please contact us here at Dyer. We pride ourselves on taking the time to listen to our clients and understand the challenges that they are facing in their specific businesses. All our advice is delivered on a personal basis and only after we fully understand your business and your position. For an impartial discussion about your business and your financial requirements please contact us on 020 8308 0777, or email us at or to learn more about our work visit

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