Improvements to form VAT7

We have amended the form VAT7: Application to cancel your VAT registration, based on your feedback.

The form has been updated to display the questions necessary for insolvency practitioners to supply important information.

The previous version of the form requested bank details to be entered. This question has now been removed as bank details are not required for any claims involving insolvency.

You advised us the VAT7 form does not bring up a question prompting for the date of deregistration when the option ‘The business has gone into liquidation’ is selected.

As the date of deregistration is often different from the date of liquidation, we have ensured the required boxes now appear.

When entering the date the business went into liquidation, please use the last day of trading prior to your appointment. Our systems will then record the date of insolvency as the following day.

For example, if you enter ‘29/03/2023’ as the date the business went into liquidation, the date of insolvency will be recorded on HMRC systems as ‘30/03/2023’.

When entering the date you want to deregister, please use the last day of trading.

Our systems will then record the effective date of deregistration, that is the first day of non-trading, as the following day.

For example, if you enter ‘31/03/2023’ as the date you want to deregister, the effective date of deregistration will be recorded on HMRC systems as ‘01/04/2023’.

More information about VAT deregistration can be found in section 6 of Insolvency (VAT Notice 700/56).

If you have any questions about this insolvency bulletin, please direct them to R3 or your representative group who will take them forward with HMRC.