Written by Hammad Rasool MAAT·AAT licensed accountant·Updated November 2026

What the VPCF1 says

The VPCF1 is headed as a decision to cancel your VAT registration. GOV.UK confirms it is a genuine HMRC letter. It tells you that HMRC intends to deregister you from VAT, and that you can keep your registration by providing evidence within 30 days.

Why HMRC sends it

In our experience these letters go to businesses whose records look inactive to HMRC. Typical triggers are a run of nil VAT returns, returns that have not been filed, or HMRC post being returned undelivered. The letter does not accuse you of anything. It is HMRC tidying up registrations it believes are no longer needed.

If you are still trading and want to stay registered

Reply within the 30 days with evidence that the business is making, or intends to make, taxable sales. Useful evidence includes:

  • recent sales invoices and purchase invoices
  • business bank statements showing trading income
  • signed contracts or orders for future work
  • a short covering letter explaining any quiet period, such as illness or a gap between contracts

File any VAT returns that are outstanding at the same time. Missing returns undermine everything else you send.

Key point: the 30 days run from the date on the letter, not from the day you open it. Reply in the way the letter asks and keep proof of sending.

If you do nothing

HMRC will cancel the registration. From that date you must stop charging VAT and stop showing a VAT number on invoices, and you can no longer reclaim VAT on costs. You will have to send a final VAT return, which may include VAT on stock and assets you still hold. If you are still trading above the £90,000 registration threshold you would have to register all over again, with a gap that is awkward to explain to customers.

Example

A design consultant filed 4 nil VAT returns while working abroad on a long project billed through another company. HMRC issued a VPCF1. She replied within 2 weeks with 2 signed UK contracts starting the next quarter and her bank statements, and HMRC kept the registration open.

If you no longer need to be registered

If your taxable turnover has fallen and you would be better off outside VAT, losing the registration may suit you. It is still better to deal with it properly: confirm the position with HMRC, file the final return and account for any VAT due on stock and assets. Our VAT deregistration guide covers the steps.

Common questions

Is the VPCF1 letter genuine?
GOV.UK lists VPCF1 among the genuine letters HMRC sends. If you are unsure, do not use contact details from a suspicious message. Use the details on GOV.UK.
How long do I have to reply to a VPCF1?
30 days to provide evidence if you want to keep your VAT registration.
Can I keep my VAT number if I am not trading yet?
You need to show that you intend to make taxable sales, for example with contracts, orders or a clear plan backed by evidence.
What if my registration has already been cancelled?
Get advice quickly. Depending on the facts you may be able to ask HMRC to review the decision, or you may need to register again.

Checked against GOV.UK on 10 November 2026: Check if a letter you have received from HMRC is genuine, Register for VAT.

About the author

Hammad Rasool MAAT is an AAT licensed accountant based in Bolton. TaxTune Accountants looks after sole traders, landlords, contractors and limited companies in Bolton, Wigan, Bury, Salford, Oldham, Stockport and Manchester, and online across the UK.