Hidden traps?

Making Tax Digital for VAT will be extended to voluntary registrations for VAT periods beginning on 1 April 2022 or later. Neil Warren considers whether it makes sense for a business to deregister before this date

Many UK businesses have either ceased to trade or suffered reduced turnover due to the Covid-19 pandemic. In some cases, this lost turnover will be permanent and therefore offer the opportunity for deregistration. Many other businesses are VAT registered on a voluntary basis anyway, having always traded below the compulsory registration threshold.