HMRC formalises the deadline for final VAT returns following deregistration

On 13 May 2025, HMRC amended the VAT Regulations 1995 to formalise a longstanding administrative concession regarding the deadline for payment and submission of the final VAT return following deregistration.

Under the previous regulations, most businesses were required to submit their final VAT return within one month and seven days from their effective date of deregistration. In practice, however, HMRC has allowed businesses one month and seven days from the date the final return is made available—a concession that accounted for administrative delays and ensured consistency.

The amendment, effective from 13 June 2025, gives HMRC the power to extend the deadline of a final return by issuing a Direction. It is expected that HMRC will publish such a Direction to align the legislation with the established practice, formally allowing businesses one month and seven days from the date the final return is made available. This change provides legal clarity. Whilst it represents a technical change in the regulation, there is no change to HMRC’s practice.

This amendment will apply to businesses whose effective date of deregistration is on or after 14 June 2025. Businesses with an earlier deregistration date will continue to benefit from the administrative concession in the same way as before.