Can I deregister for VAT if my turnover drops?
My business has slowed down and my turnover is now well under the threshold, so I'm wondering if I can come off the VAT scheme.
Asked by Anonymous on 2 March 2026
1 Answer
You can apply to deregister voluntarily if you expect your VAT-taxable turnover to stay below the deregistration threshold, currently £88,000, over the next 12 months, and you do this online through your VAT account. Once deregistered, you stop charging VAT on sales but also lose the ability to reclaim VAT on purchases, and there may be a final VAT liability on business assets you still hold. It's worth thinking through the full picture with an accountant before deregistering, particularly if your turnover might pick back up soon.