If you are a vat registered trader in the UK 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 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 many reasons that could compel one to come out of the vat system. You can make an application for deregistration of vat if your business has collapsed and you’ve 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 business, there is a alternation in the legal status of your business, you either join another vat group or disband your present vat group, or else you intend 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 can allow you to be a legitimate candidate for vat deregistration.
You can also voluntarily step out of 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 vat verification. However, in all the above circumstances you will need 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 are deregistered from vat then you will no longer be allowed to issue vat invoices or file vat returns.
In order for you to deregister yourself from VAT you will need to get hold of your vat agent that will guide you on the exact process to be followed in order that you don’t end up making errors. You will have to fill up 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 within 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 why you’ve requested deregistration along with providing the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will 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 usually 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 satisfied with the application then you will get 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 now have the ability to direct 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 the vat certificate then you will have to follow proper procedure as laid down by hmrc vat department find out. If all your papers have been in order and if there aren’t any mistakes in your deregistration form then you ought to be out from the vat system in a month of filing vat deregistration.