If you’re a vat registered trader in the UK that desires to surrender your vat certificate for a variety of reasons then you need to learn all about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is pretty simple, you will still need to take into account vat and file your final vat return.
There are many reasons that could compel you to come out of the vat system. It is possible to make an application for deregistration of vat if your business has collapsed and you have declared insolvency, your taxable sales have dropped dramatically and 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 the business, you can either join another vat group or disband your existing vat group, or else 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 could make you 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 this 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 why you want to cancel your vat registration. Once you are deregistered from vat then you will no longer be permitted to issue vat invoices or file vat returns.
In order for you to deregister yourself from www.vatnumbers.com you will need to contact 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 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 within this range. This form will require your vat registration number, business name and address, and may need you to tick the appropriate 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. Additionally, you will need to specify if you follow the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will usually reply in a period of 3 weeks. In the event you don’t get a reply then you definitely should remind them. If hmrc is satisfied with your application then you will receive 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 now have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain situations compel you to apply 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 aren’t any mistakes in your deregistration form then you should be out of the vat system within a month of filing for vat deregistration.