If you are a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a number of reasons then you will want to learn all about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is pretty simple, you still need to take into account vat and file your final vat return.
There are several reasons that could compel one to leave the vat system. You can apply for deregistration of vat if your business has collapsed and you’ve filed for insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your business, there is a alternation in the legal status of your business, you can either join another vat group or disband your present vat group, or you want 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 legitimate candidate for vat deregistration.
You can also voluntarily leave the vat tax system if your taxable supplies are mainly or even wholly zero rated. You can even do this in case your input tax usually exceeds your output tax vatverification.com. However, out of all 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 will no longer be permitted to issue vat invoices or file vat returns.
For you to definitely deregister yourself from VAT you will need to contact your vat agent that will guide you about the exact process to be followed so that you don’t 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 within this range. This form will require your vat registration number, business name and address, and may need you to tick the appropriate reason as to the reasons you’ve applied for 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 need 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 usually reply in a time period of 3 weeks. In the event you do not receive a reply then you 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 now be able to direct 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 the vat certificate then you will need to follow proper procedure as laid down by hmrc vat department check this out. If all your papers have been in order and if there are no mistakes in the deregistration form you then should be out of the vat system within a month of filing vat deregistration.