If you’re a vat registered trader in the United Kingdom 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. Even though the procedure for canceling vat registration is pretty simple, you still have to take into account vat and file your final vat return.
There are many reasons that may compel one to leave 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 12 months, you sell your organization, there is a change in the legal status of your business, you can either join another vat group or disband your present vat group, or else you want to join the agricultural flat rate vat scheme. There are several 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 leave the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can also do so if 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 why you wish to cancel your vat registration. Once you’re deregistered from vat then you’ll no longer be permitted to issue vat invoices or file vat returns.
For you to definitely deregister yourself from http://vatcontrol.com you will have to contact your vat agent that will guide you on the exact process to be followed in order that you don’t 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 why you’ve requested deregistration along with offering the required anticipated sales figures. Additionally, you will 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 follow the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In case you do not receive a reply then you should remind them. If hmrc is content with the application then you’ll 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 now have the ability to direct 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’ll need 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 ought to be out from the vat system within a month of filing vat deregistration.