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 need to know everything about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you still need to account for vat and file a final vat return.
There are many reasons that could 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 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 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 allow you to be a legitimate candidate for vat deregistration.
You can 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 vat verification. However, out of all above circumstances you will need to provide required proof as well as 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 will no longer be allowed 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 will direct you about the exact process that must be followed so that you don’t find yourself making errors. You will have to fill 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 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 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 if you follow the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will often reply in a time period of 3 weeks. In case you do not receive a reply then you should remind them. If hmrc is satisfied with the 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 direct you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.
If certain circumstances compel you to apply for cancellation of your vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department discover more here. If all your papers are in order and if there are no mistakes in the deregistration form then you should be out from the vat system in a month of filing for vat deregistration.