If you are a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a number 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 pretty simple, you will still need to account for 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 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 in the next 1 year, you sell your business, there’s a alternation in the legal status of your 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 various other reasons that are specified by HM Revenue and Customs or hmrc vat department that can make you a legitimate candidate for vat deregistration.
You may also voluntarily step out of the vat tax system if your taxable supplies are mainly or perhaps 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 in addition to convince hmrc vat regarding the genuineness of the reason as to the reasons you want to cancel your vat registration. Once you’re deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.
In order for you to deregister yourself from vat validation 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 up 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 appropriate reason as to the reasons you’ve requested deregistration along with providing the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will have to specify if you stick to the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will often reply within a period of 3 weeks. In the event you do not get a reply then you should remind them. If hmrc is content with the application then you’ll get a formal notice of vat cancellation on VAT35 form as well as receive a formal notice of exemption from registration on VAT8 form. Your vat agent will 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 apply 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 you then ought to be out of the vat system in a month of filing vat deregistration.