If you’re a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a number of reasons then you need to know all about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you still have to account for vat and file your final vat return.
There are many reasons that may compel one to leave 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 in the next 12 months, you sell your organization, there is a change in the legal status of the business, you either join another vat group or disband your present vat group, or 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 can make you a valid candidate for vat deregistration.
You can also voluntarily leave the vat tax system in case your taxable supplies are mainly or perhaps wholly zero rated. You can also 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 as well as 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 allowed to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from www.vatnumbers.com you will need to get hold of your vat agent that should direct you about the exact process to be followed so that you don’t end up 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 appropriate reason as to why you’ve requested deregistration in addition to providing the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets that you currently hold. You will also need to specify if you stick to the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will usually reply in a time 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’ll receive a formal notice of vat cancellation on VAT35 form as well as 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 need 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 the deregistration form then you ought to be out of the vat system within a month of filing for vat deregistration.