If you are a vat registered trader in the UK that wants 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. Although the process of canceling vat registration is quite simple, you still need to account for vat and file your final vat return.
There are several 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 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 12 months, you sell your business, there’s a change in the legal status of your business, you can either join another vat group or disband your existing vat group, or else 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 allow you to be a valid candidate for vat deregistration.
You can also voluntarily step out of the vat tax system in case your taxable supplies are mainly or perhaps wholly zero rated. You can even do so in case your input tax usually exceeds your output tax. However, in all the above circumstances you will need to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you are deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from http://vatnumbers.com you will need to contact your vat agent that will guide you on the exact process that must be followed so that you don’t find yourself making errors. You will have to fill the VAT 7 vat form once you have read and understood vat notice 700/11 on ?Canceling your registration? together with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and will need 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 have to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will need to specify in the event you stick to the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will often reply in a time period of 3 weeks. In case you do not receive a reply then you definitely should remind them. If hmrc is satisfied with your application then you will get a formal notice of vat cancellation on VAT35 form as well as 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 circumstances compel you to make an application for cancellation of the 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 when there aren’t any mistakes in your deregistration form you then should be out of the vat system in a month of filing vat deregistration.