If you are a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a variety of reasons then you need to know everything about the vatregistrationnumber.com vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is quite simple, you will still have to account for vat and file your final vat return.
There are several reasons that may compel you to come out of the vat system. It is possible to make an application for deregistration of vat if your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 within the next 1 year, you sell your organization, there’s a alternation in the legal status of your business, you either join another vat group or disband your existing vat group, or else you intend 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 can allow you to be 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 if 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 as to the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you’re deregistered from vat then you’ll not be permitted to issue vat invoices or file vat returns.
For you to deregister yourself from you will have to get hold of your vat agent that should guide you about the exact process that must be followed in order 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 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 why you’ve requested deregistration along with offering the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets which you currently hold. You will also need 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 in a period of 3 weeks. In case you do not receive a reply then you should remind them. If hmrc is content with the application then you will get a formal notice of vat cancellation on VAT35 form as well as get a formal notice of exemption from registration on VAT8 form. Your vat agent will now 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 make an application for cancellation of the vat certificate then you will have to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and when there aren’t any mistakes in the deregistration form then you ought to be out from the vat system within a month of filing vat deregistration.