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 need to know everything about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is quite simple, you will still have to take into account vat and file your final vat return.
There are several reasons that could compel you to come out of 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 and 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 change in the legal status of your business, you either join another vat group or disband your existing 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 may also voluntarily leave the vat tax system in case your taxable supplies are generally 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 in addition to convince hmrc vat regarding the genuineness of the reason as to the reasons you want to cancel your vat registration. Once you’re deregistered from vat then you will no longer be permitted to issue vat invoices or file vat returns.
For you to deregister yourself from vatcontrol you will need to contact your vat agent that should direct you on the exact process that must be followed in order that you don’t end up 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? 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 require you to tick the right reason as to why you’ve requested deregistration in addition to 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. You will also have to specify in the event you follow the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In case you don’t get a reply then you should remind them. If hmrc is satisfied with the application then you will get a formal notice of vat cancellation on VAT35 form and also receive a formal notice of exemption from registration on VAT8 form. Your vat agent will now be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain situations compel you to apply for cancellation of your vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If all your papers are in order and if there are no mistakes in your deregistration form then you ought to be out from the vat system in a month of filing for vat deregistration.