If you’re a vat registered trader in the United Kingdom 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. Although the procedure for canceling vat registration is pretty simple, you still have to take into account vat and file your final vat return.
There are several reasons that could compel you to leave the vat system. You can make an application for deregistration of vat in case your business has collapsed and you’ve declared insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your organization, there’s a change in the legal status of the business, you either join another vat group or disband your existing vat group, or you want to join the agricultural flat rate vat scheme. There are several other reasons that are specified by HM Revenue and Customs or hmrc vat department that could make you a legitimate candidate for vat deregistration.
You may also voluntarily leave the vat tax system if your taxable supplies are generally or even wholly zero rated. You can even do this if your input tax usually exceeds your output tax. However, in all the above circumstances you will need 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’ll not be permitted to issue vat invoices or file vat returns.
In order for you to deregister yourself from vatcontrol.com you will have to contact 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 have to fill the VAT 7 vat form after you have read and understood vat notice 700/11 on ?Canceling your registration? along with notice 700/1 among other notices within this range. This form will need your vat registration number, business name and address, and may require you to tick the right reason as to the reasons you’ve applied for deregistration along with offering the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets that you currently hold. You will also have to specify if you stick to the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will often reply within 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 get a formal notice of vat cancellation on VAT35 form and also get a formal notice of exemption from registration on VAT8 form. Your vat agent will have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain circumstances compel you to apply for cancellation of your vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and if there aren’t any mistakes in your deregistration form then you ought to be out from the vat system within a month of filing vat deregistration.