If you’re a vat registered trader in the UK that wants to surrender your vat certificate for a number of reasons then you will want to know everything about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you still need to take into account vat and file your final vat return.
There are many reasons that could compel one to leave the vat system. You can apply for deregistration of vat in case 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 can 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 step out of the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can also do this if your input tax usually exceeds your output tax http://vatverification.com. 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 why you wish 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.
For you to definitely deregister yourself from VAT you will need to get hold of your vat agent that should direct you on the exact process that must be followed in order that you don’t find yourself making errors. You will need 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 within this range. This form will require your vat registration number, business name and address, and will need you to tick the appropriate reason as to the reasons you’ve applied for deregistration in addition to 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. Additionally, you will need to specify if you follow the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will often reply in a time period of 3 weeks. In the event you do not 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 debt after deregistration.
If certain situations compel you to apply for cancellation of your vat certificate then you will have to follow proper procedure as laid down by hmrc vat department get more info. If your entire papers have been in order and if there aren’t any mistakes in the deregistration form you then ought to be out from the vat system within a month of filing for vat deregistration.