Commentary

V7.153 VAT deregistration—anti-avoidance measure

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.153 VAT deregistration—anti-avoidance measure

Part V7 Tax planning | Commentary

V7.153 VAT deregistration—anti-avoidance measure

As with many aspects of VAT, HMRC has anti-avoidance measures in relation to deregistration, namely that the expected reduction in sales must not be because a business intends to suspend trading for 30 days or more. See Example 3.

Example 3

Bill trades as a fish and chip shop, and his taxable sales are £7,500 per month (£90,000 per annum). He is VAT registered. Next year, he is planning to close his shop for eight weeks to go on a long holiday to Australia – he sees an opportunity to deregister for VAT as his taxable turnover will

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial