If you’re 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 learn all about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you still have to take into account vat and file your final vat return.
There are several reasons that may compel you to leave the vat system. You can make an application for deregistration of vat in case your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 within the next 1 year, you sell your business, there’s a alternation 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 various 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 can also voluntarily step out of the vat tax system if your taxable supplies are mainly or even wholly zero rated. You can also do this if your input tax usually exceeds your output tax. 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 want to cancel your vat registration. Once you’re 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 http://vatnumbers.com you will have to contact your vat agent that should direct you about 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 within 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’ve requested deregistration along with offering the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will need 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 don’t get a reply then you should remind them. If hmrc is content with the application then you will get 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 now be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.
If certain circumstances compel you to make an application for cancellation of your vat certificate then you will have to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and if there are no mistakes in the deregistration form then you should be out from the vat system within a month of filing vat deregistration.