If you are a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a variety of reasons then you need to know everything about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is pretty simple, you still have to take into account vat and file a final vat return.
There are several reasons that may compel one to leave the vat system. It is possible to make an application for deregistration of vat if your business has collapsed and you’ve declared insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 within the next 12 months, you sell your business, there is 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 various other reasons that are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a legitimate candidate for vat deregistration.
You may also voluntarily step out of the vat tax system if your taxable supplies are generally or even wholly zero rated. You can also do this in case your input tax usually exceeds your output tax. However, in all the above circumstances you will have to provide required proof as well as convince hmrc vat regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you’re deregistered from vat then you will no longer be permitted to issue vat invoices or file vat returns.
In order for you to deregister yourself from www.vatregistrationnumber.com you will need to get hold of your vat agent that will guide you on the exact process to be followed so that you don’t find yourself making errors. You will need to fill up the VAT 7 vat form after you have read and understood vat notice 700/11 on ?Canceling your registration? together with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and will need you to tick the appropriate reason as to why you have requested deregistration in addition to offering the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets which you currently hold. You will also have to specify in the event you follow the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will often reply in a time period of 3 weeks. In the event you don’t get a reply then you definitely should remind them. If hmrc is content with the application then you will 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 now have the ability to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain circumstances compel you to apply for cancellation of the vat certificate then you will have to follow proper procedure as laid down by hmrc vat department. If your entire papers are in order and if there are no mistakes in your deregistration form then you ought to be out from the vat system in a month of filing for vat deregistration.