Businesses are able to ask HMRC to cancel their registration if their VAT taxable turnover falls below the deregistration threshold of £83,000.
Businesses that are below the VAT threshold and are not voluntarily registered do not account for VAT on their supplies.
I welcome that the Chancellor listened to the calls from the hospitality sector to keep the temporary reduction in VAT (5 per cent from 20 per cent) for hospitality and tourism businesses, which had previously been extended until 31 March 2021, in place until 30 September 2021 when it will change to 12.5 per cent for the remaining six months until 31 March 2022.
Beyond VAT, I hope that many have been able to make full use of the broad package of support for business which has included, amongst other support, the Coronavirus Job Retention Scheme, the Self-Employed Income support Scheme, one-off grants for closed businesses in the retail, hospitality and leisure sectors, various loans schemes, and Restart Grants of up to £18,000 for retail, hospitality, accommodation, leisure, personal care and gym businesses.