If you are a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a number of reasons then you will want to know all about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you will still have to take into account vat and file a final vat return.
There are many reasons that could compel one to come out of the vat system. You can apply for deregistration of vat if your business has collapsed and you’ve declared insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 1 year, you sell your business, there’s a change in the legal status of the business, you either join another vat group or disband your existing vat group, or else you want to join the agricultural flat rate vat scheme. There are several other reasons that are specified by HM Revenue and Customs or hmrc vat department that could make you a valid candidate for vat deregistration.
You may also voluntarily leave the vat tax system if your taxable supplies are generally or even wholly zero rated. You can even do so in case your input tax usually exceeds your output tax. However, in all the above circumstances you will have to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you are deregistered from vat then you’ll no longer be permitted to issue vat invoices or file vat returns.
For you to deregister yourself from vatregistrationnumber you will have to get hold of your vat agent that will direct you on the exact process that must be followed so that you do not find yourself making errors. You will need to fill the VAT 7 vat form once you have read and understood vat notice 700/11 on ?Canceling your registration? along with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and will require you to tick the right reason as to the reasons you have applied for deregistration in addition to offering the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets that you currently hold. You will also have to specify in the event you stick to the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will usually reply within a time period of 3 weeks. In the event you don’t receive a reply then you should remind them. If hmrc is content with your application then you’ll get a formal notice of vat cancellation on VAT35 form and also get a formal notice of exemption from registration on VAT8 form. Your vat agent will be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.
If certain situations compel you to apply for cancellation of your vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and if there are no mistakes in your deregistration form then you ought to be out of the vat system within a month of filing vat deregistration.