Commentary

V2.147 Exemption from registration

Part V2 Registration – deregistration

V2.147 Exemption from registration

V2.147 Exemption from registration

Exemption from registration—turnover expected to fall below deregistration limit

A person does not become liable to registration under the provisions relating to historical turnover (see V2.135 and V2.137) if HMRC is satisfied that the value of his taxable supplies in the period of one year, beginning at the time at which he would otherwise become liable to registration, will not exceed the prescribed deregistration limit (currently £83,000)1. For past prescribed registration limits, see 'UK taxable supplies—deregistration' in Tax tables and checklists.

A person who wishes to claim exemption from registration under this provision need not furnish Form VAT 1 provided that he notifies HMRC (the electronic registration service may be used) within the appropriate period2. It seems that a person who fails to notify a liability to register at the appropriate time and subsequently seeks retrospective exemption has limited chances of success as is illustrated by the cases of Property Trade

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