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 learn 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 your final vat return.
There are several reasons that may compel one to come out of the vat system. You can apply for deregistration of vat in case your business has collapsed and you’ve filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your business, there is a alternation in the legal status of your business, you either join another vat group or disband your existing vat group, or you intend to join the agricultural flat rate vat scheme. There are several other reasons which are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a legitimate candidate for vat deregistration.
You can also voluntarily step out of the vat tax system in case your taxable supplies are mainly or perhaps wholly zero rated. You can also do so if your input tax usually exceeds your output tax. However, out of all above circumstances you will need to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to why you wish to cancel your vat registration. Once you’re deregistered from vat then you’ll no longer be permitted to issue vat invoices or file vat returns.
For you to deregister yourself from www.vatcontrol.com you will have to get hold of your vat agent that should direct you on the exact process that must be followed in order that you don’t find yourself making errors. You will have to fill the VAT 7 vat form once you have read and understood vat notice 700/11 on ?Canceling your registration? together with notice 700/1 among other notices within this range. This form will need your vat registration number, business name and address, and will require you to tick the right reason as to the reasons you’ve requested 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 which you currently hold. You will also need to specify if you follow the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In the event you do not get a reply then you should remind them. If hmrc is content with your application then you’ll receive a formal notice of vat cancellation on VAT35 form and also receive a formal notice of exemption from registration on VAT8 form. Your vat agent will have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain situations compel you to make an application for cancellation of your 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 aren’t any mistakes in the deregistration form then you ought to be out of the vat system in a month of filing vat deregistration.