If you’re a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a variety of reasons then you need to learn all about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is pretty simple, you will still have to account for vat and file a final vat return.
There are many reasons that may compel you 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 within 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 else you intend to join the agricultural flat rate vat scheme. There are various other reasons which are specified by HM Revenue and Customs or hmrc vat department that can make you a valid candidate for vat deregistration.
You may 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 need to provide required proof as well as convince hmrc vat regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you’re deregistered from vat then you will no longer be permitted to issue vat invoices or file vat returns.
For you to deregister yourself from vatvalidation you will have to contact your vat agent that should guide you on the exact process to be followed so that you do not end up making errors. You will have to fill 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 in this range. This form will require your vat registration number, business name and address, and may need you to tick the appropriate reason as to the reasons you have applied for deregistration along with offering the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets that you currently hold. You will also need to specify in the event you stick to the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In the event you don’t get a reply then you definitely should remind them. If hmrc is satisfied with your application then you’ll get 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 now be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain situations compel you to apply for cancellation of your vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If all your papers are in order and when there are no mistakes in your deregistration form you then ought to be out of the vat system within a month of filing for vat deregistration.