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. Although the procedure for canceling vat registration is quite simple, you will still have to account for vat and file your final vat return.
There are several reasons that could compel you to come out of the vat system. It is possible to 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 within the next 1 year, you sell your business, there’s a change in the legal status of the business, you can either join another vat group or disband your present vat group, or else 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 legitimate 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 this if your input tax usually exceeds your output tax www.vatverification.com. However, out of all above circumstances you will need to provide required proof in addition to convince hmrc vat as to 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 permitted to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from VAT you will need to contact your vat agent that should direct you about the exact process that must be followed in order that you don’t find yourself 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 will need you to tick the right reason as to why you have requested deregistration in addition to 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. 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 in a time period of 3 weeks. In the event you don’t get a reply then you definitely should remind them. If hmrc is content with the application then you will get a formal notice of vat cancellation on VAT35 form as well as 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 bad debts after deregistration.
If certain circumstances compel you to apply for cancellation of the vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department our site. If all your papers are in order and if there aren’t any mistakes in the deregistration form then you should be out of the vat system within a month of filing vat deregistration.