If you are a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a variety 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 quite simple, you will still need to take into account vat and file your final vat return.
There are many reasons that may compel one to leave the vat system. You can apply for deregistration of vat in case your business has collapsed and you’ve declared 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 business, there’s a alternation in the legal status of your business, you can either join another vat group or disband your existing vat group, or else 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 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 even wholly zero rated. You can also do so if your input tax usually exceeds your output tax. However, out of all above circumstances you will have to provide required proof as well as convince hmrc vat regarding the genuineness of the reason as to why you wish to cancel your vat registration. Once you are deregistered from vat then you will no longer be permitted to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from vatcontrol.com you will need to contact your vat agent that will direct you on the exact process that must be followed so that you do not end up making errors. You will have to fill up the VAT 7 vat form after 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 need you to tick the appropriate reason as to the reasons you’ve applied for deregistration along with offering the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets which you currently hold. You will also 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 within 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 the 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 direct you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.
If certain situations 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 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.