Know all about the vat deregistration process to cancel your vat number

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 account for vat and file a final vat return.

There are several reasons that may compel one to leave the vat system. It is possible to make an application for deregistration of vat in case your business has collapsed and you’ve filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 within the next 12 months, you sell your business, there is a alternation in the legal status of the 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 which 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 leave the vat tax system if your taxable supplies are generally or even wholly zero rated. You can even 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 as well as convince hmrc vat regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you are deregistered from vat then you’ll no longer be allowed to issue vat invoices or file vat returns.

For you to deregister yourself from vatcontrol.com you will need to contact your vat agent that will direct you on the exact process to be followed in order that you do not 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? along with notice 700/1 among other notices in this range. This form will need your vat registration number, business name and address, and may need you to tick the appropriate reason as to the reasons you’ve 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.

Once you have filled up the vat deregistration form then hmrc will usually reply in a time period of 3 weeks. In case you don’t receive a reply then you definitely should remind them. If hmrc is satisfied with the application then you’ll 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 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 the vat certificate then you will have to follow proper procedure as laid down by hmrc vat department. If your entire papers have been in order and if there are no mistakes in your deregistration form then you ought to be out from the vat system in a month of filing for vat deregistration.