If you’re a vat registered trader in the UK that wants to surrender your vat certificate for a variety of reasons then you will want to know everything about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is quite simple, you still have to account for 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 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 organization, there is a alternation 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 which are specified by HM Revenue and Customs or hmrc vat department that can make you a legitimate candidate for vat deregistration.
You may also voluntarily step out of the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can also do so if your input tax usually exceeds your output tax. However, out of all 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 wish to cancel your vat registration. Once you’re deregistered from vat then you will no longer be allowed to issue vat invoices or file vat returns.
In order for you to deregister yourself from www.vatcontrol.com you will have to get hold of your vat agent that should guide you on the exact process that must be followed so that you do not end up making errors. You will need to fill up 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 in this range. This form will need your vat registration number, business name and address, and will need you to tick the right reason as to the reasons you have applied for 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. You will also 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 often reply in a time period of 3 weeks. In case you don’t receive a reply then you should remind them. If hmrc is content 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 be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.
If certain situations compel you to make an application for cancellation of the vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department. If your entire papers are in order and if there are no mistakes in your deregistration form then you should be out from the vat system in a month of filing vat deregistration.