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ACCA Strategic Professional · Advanced Taxation (UK) · Value added tax

Quill Ltd is VAT registered and has made standard-rated supplies for several years. Its taxable turnover in the next 12 months is expected to be £87,000, below the deregistration limit in the ACCA tax tables. Which statement is correct?

Quill Ltd can apply to deregister because its expected taxable turnover of £87,000 for the next 12 months is below the £88,000 deregistration limit in the tax tables. The £90,000 registration limit is not the test for deregistration.

  1. AQuill Ltd can apply to deregister, because expected turnover is below £88,000Correct
  2. BQuill Ltd cannot deregister unless turnover is below £85,000
  3. CQuill Ltd must remain registered because turnover exceeds £85,000
  4. DQuill Ltd can deregister only if it makes no standard-rated supplies

Explanation

The deregistration limit is £88,000. A registered trader whose taxable turnover in the next 12 months is expected to be at or below this can apply to deregister. £87,000 is below £88,000, so deregistration is permitted.

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