If you are a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you need 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 still have to take into account vat and file a final vat return.
There are several reasons that could compel one to come out of the vat system. You can apply for deregistration of vat if your business has collapsed and you have 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 12 months, you sell your organization, there’s a alternation in the legal status of the business, you can either join another vat group or disband your present vat group, or else you want 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 can make you a valid candidate for vat deregistration.
You may also voluntarily step out of the vat tax system in case your taxable supplies are generally or perhaps 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 in addition to convince hmrc vat as to the genuineness of the reason as to why you wish to cancel your vat registration. Once you are deregistered from vat then you’ll not be allowed to issue vat invoices or file vat returns.
For you to definitely deregister yourself from VAT you will have to contact your vat agent that will direct you on the exact process to be followed so that you do not find yourself making errors. You will need 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 need your vat registration number, business name and address, and may need you to tick the appropriate reason as to the reasons you have requested deregistration in addition to providing the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will have to specify in the event you stick to the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In the event you do not receive a reply then you definitely should remind them. If hmrc is satisfied with your application then you’ll receive a formal notice of vat cancellation on VAT35 form and also receive 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 make an application for cancellation of the vat certificate then you will need to follow proper procedure as laid down by hmrc vat department additional info. If all your papers have been in order and when there aren’t any mistakes in the deregistration form then you ought to be out from the vat system in a month of filing vat deregistration.