If you’re a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a number of reasons then you need to know 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 a final vat return.
There are several reasons that could compel one to leave the vat system. You can make an application for deregistration of vat if your business has collapsed and you’ve declared 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 is 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 several other reasons that are specified by HM Revenue and Customs or hmrc vat department that can make you a valid candidate for vat deregistration.
You can also voluntarily leave the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can also do so in case 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 as to the genuineness of the reason as to why you want to cancel your vat registration. Once you are 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 http://vatregistrationnumber.com you will need to get hold of your vat agent that should direct you about the exact process to be followed in order that you don’t find yourself making errors. You will have 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 in this range. This form will need your vat registration number, business name and address, and will need you to tick the appropriate reason as to the reasons you have requested deregistration along with offering 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 if you stick to the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will usually reply within a time period of 3 weeks. In the event you do not get 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 as well as receive a formal notice of exemption from registration on VAT8 form. Your vat agent will 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 make an application for cancellation of the 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 when there are no mistakes in your deregistration form you then should be out of the vat system within a month of filing for vat deregistration.