If you are a vat registered trader in the United Kingdom 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 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 could compel one to come out of the vat system. You can apply for deregistration of vat if your business has collapsed and you’ve declared insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 1 year, you sell your organization, there’s a change in the legal status of the business, you can either join another vat group or disband your present vat group, or you intend to join the agricultural flat rate vat scheme. There are several other reasons that are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a legitimate candidate for vat deregistration.
You can also voluntarily leave the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can even do so if your input tax usually exceeds your output tax vatverification. 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.
For you to definitely deregister yourself from VAT you will have to contact your vat agent that will direct you about the exact process that must be followed so that you do not end up making errors. You will need to fill up 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 need your vat registration number, business name and address, and will need you to tick the right reason as to why you’ve requested deregistration in addition to 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 need to specify in the event you follow the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will often reply in a time period of 3 weeks. In case you don’t get a reply then you definitely should remind them. If hmrc is content with your application then you’ll receive a formal notice of vat cancellation on VAT35 form and also 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 need to follow proper procedure as laid down by hmrc vat department yoururl.com. If your entire papers are in order and if there aren’t any mistakes in your deregistration form you then should be out of the vat system in a month of filing vat deregistration.