If your business is VAT-registered but planning to deregister, or has already done so, there’s some good news from HMRC that could save you stress, time, and possibly money.
As of 13th June 2025, HMRC has officially updated the VAT Regulations to give them the power to extend the deadline for submitting a final VAT return when a business deregisters. This might sound like a small tweak, but it’s a big deal if you’ve ever felt the pressure of wrapping up VAT admin in a tight window.
What’s Changed?
Until now, HMRC would occasionally allow deadline extensions, but it was all done informally – basically, a discretionary favour. Now, it’s written into law.
That means:
- More clarity and certainty if you need extra time after deregistering
- Reduced risk of penalties for missing tight deadlines
- One less thing to stress about during what can already be a complex process
Why This Matters to Small Businesses
When you’re winding down your VAT obligations, there’s often a lot going on – final invoices, outstanding payments, stock adjustments. Having breathing space to get your final VAT return right makes a real difference. It means fewer rushed decisions, better accuracy, and less chance of a costly error.
And while we’re on the topic of VAT…
Need Help Spreading Your VAT Bill?
Through our partnership with Swoop, we can help you spread your VAT bill over 3 months. It’s a smart move if you’re:
- Waiting on late payments
- Managing tight cash flow
- Wanting to avoid that 8.25% late payment interest from HMRC
Decisions are quick (usually within 48 hours) and it won’t dent your credit score.
Apply now via our Swoop portal or get in touch with us for a chat.
