If you’re a vat registered trader in the UK that wants to surrender your vat certificate for a variety of reasons then you will want to learn everything about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you still need to take into account 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 apply 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 in the next 12 months, you sell your business, there’s a alternation in the legal status of your 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 several other reasons which are specified by HM Revenue and Customs or hmrc vat department that can make you a legitimate candidate for vat deregistration.
You may also voluntarily step out of the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can even 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 as to the genuineness of the reason as to why you want to cancel your vat registration. Once you are deregistered from vat then you’ll no longer be allowed to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from vatcontrol you will have to contact your vat agent that will guide you on the exact process that must be followed in order that you do not find yourself making errors. You will need to fill 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 in 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 have applied for deregistration along with 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. Additionally, you will have to specify in the event you follow 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 the event you do not receive a reply then you should remind them. If hmrc is satisfied with your application then you will receive 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 be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain circumstances compel you to make an application for cancellation of your vat certificate then you’ll 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 your deregistration form you then ought to be out from the vat system within a month of filing for vat deregistration.