UK HMRC issued policy paper and the Value Added Tax (Amendment) Regulations 2025 (StIn 2025/578) which allows for a change to the deadline for the submission of a final return by a business where that business is no longer VAT registered.
The 2025 regulations amend the Value Added Tax Regulations 1995 (StIn 1995/2518).
Context
The measure provides a legislative basis to a current administrative practice that ensures fairness and equity in the VAT de-registration process by providing businesses additional time to submit their final return where necessary.
It allows UK HMRC to extend the time period where processing delay and compliance activity make it difficult for a business to meet the final return deadline specified.
It also brings the provision for final returns in line with the provision for regular returns where UK HMRC already have a power to extend the time limit for making a return.
Under VAT regulations, business cancelling its VAT registration must submit final return within 1 month from date of cancellation (extra week allowed for electronic returns).
The time limit for making payment on the return is the last day the return is due.
In addition, automatic penalty and interest are raised for late payments.
