If you are a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a variety of reasons then you will want to learn all about the vat deregistration process to cancel your vat number. Even though the process of 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 leave the vat system. You can apply for deregistration of vat in case 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 in the next 12 months, you sell your business, there’s a alternation in the legal status of the business, you can either join another vat group or disband your existing vat group, or you want to join the agricultural flat rate vat scheme. There are various other reasons that are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a valid candidate for vat deregistration.
You may also voluntarily leave the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can even do so 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 as to 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 permitted to issue vat invoices or file vat returns.
For you to deregister yourself from vatregistrationnumber you will need to get hold of your vat agent that will guide you about the exact process that must be followed so that you do not 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? along 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 appropriate reason as to the reasons you have applied for deregistration in addition to 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 usually reply in a period of 3 weeks. In the event you don’t get a reply then you 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 have the ability to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain situations compel you to make an application for cancellation of your vat certificate then you’ll have 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 the deregistration form then you should be out of the vat system within a month of filing vat deregistration.