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 still have to take into account vat and file your final vat return.
There are many reasons that may compel you to come out of 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 in the next 1 year, you sell your organization, there is a alternation in the legal status of your business, you can either join another vat group or disband your present 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 could allow you to be a legitimate 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 as well as 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’ll no longer be permitted to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from www.vatnumbers.com you will need to get hold of your vat agent that should direct you on the exact process to be followed in order that you do not end up making errors. You will need 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 require you to tick the appropriate reason as to why you’ve requested deregistration in addition to offering the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets which you currently hold. You will also need to specify if you stick to the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In the event you don’t receive a reply then you definitely should remind them. If hmrc is satisfied 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 now be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.
If certain circumstances 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 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 for vat deregistration.