Where an individual is registered for VAT and is subsequently re-categorised as an employee then, unless the individual is otherwise in business, the registration becomes an invalid registration. You will need to liaise with indirect tax colleagues in these cases.

If the registration is invalid the registration should be cancelled following the procedures in the VAT Deregistration Manual (VATDREG). The removal should be effected under the provisions of the VAT Act 1994, Schedule 1, Paragraph 13(3).

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