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ACCA Applied Skills · Taxation (UK) · The VAT registration requirements

Bramble Ltd is registered for VAT. Its taxable supplies for the last 12 months were £85,000, and it expects taxable supplies in the next 12 months to be £86,500. Using the deregistration limit in the Finance Act 2025 tax tables, which statement is correct?

Bramble Ltd may apply to deregister because its expected taxable supplies for the next 12 months, £86,500, do not exceed the £88,000 deregistration limit. The £90,000 registration limit is not the relevant test, and deregistration is voluntary rather than compulsory.

  1. ABramble Ltd may apply to deregister because expected taxable supplies for the next 12 months do not exceed £88,000Correct
  2. BBramble Ltd must deregister because its past taxable supplies are below £90,000
  3. CBramble Ltd cannot deregister because expected supplies are above £85,000
  4. DBramble Ltd may deregister only if expected taxable supplies are below £83,000

Explanation

A trader may apply to deregister if expected taxable supplies in the next 12 months will not exceed the deregistration limit of £88,000. £86,500 is below £88,000, so deregistration is allowed. The £90,000 figure is the registration limit and is not the test for deregistration.

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