If you’re a vat registered trader in the UK that desires to surrender your vat certificate for a variety of reasons then you need to learn all about the vatregistrationnumber.com vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you still need to account for vat and file your 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 in case your business has collapsed and you’ve filed for 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 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 several other reasons that are specified by HM Revenue and Customs or hmrc vat department that can allow you to be a legitimate candidate for vat deregistration.
You can also voluntarily leave the vat tax system in case your taxable supplies are generally or even wholly zero rated. You can also do so 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 regarding 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 permitted to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from you will have to get hold of your vat agent that should guide you on the exact process to be followed so that you do not find yourself making errors. You will need to fill the VAT 7 vat form once 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 require your vat registration number, business name and address, and may need you to tick the right reason as to why you’ve requested deregistration along with providing the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will have to specify in the event you stick to the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will often reply in a period of 3 weeks. In the event you don’t receive a reply then you definitely should remind them. If hmrc is satisfied with your application then you will 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 now have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain circumstances compel you to apply for cancellation of the vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If your entire papers are in order and if there aren’t any mistakes in the deregistration form you then should be out from the vat system in a month of filing for vat deregistration.