A business may cancel VAT registration if:

• Its taxable turnover falls below the deregistration threshold (currently £88,000)
• It stops making taxable supplies
• It changes to only non-VATable/exempt activities
• The business closes

You must notify HMRC within 30 days of becoming eligible to deregister.

What happens after deregistration:

• You stop charging VAT
• You stop filing VAT returns
• You may need to repay VAT on certain assets and stock if their value exceeds HMRC rules at the time of deregistration