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. Although the process of canceling vat registration is pretty simple, you will still have to account for vat and file a final vat return.
There are many reasons that could compel one to come out of the vat system. It is possible to apply for deregistration of vat in case 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 organization, there is a alternation in the legal status of the business, you can either join another vat group or disband your existing 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 allow you to be a valid candidate for vat deregistration.
You may also voluntarily leave the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can also do this in case your input tax usually exceeds your output tax vatverification. 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’ll not be allowed to issue vat invoices or file vat returns.
For you to definitely deregister yourself from VAT you will have to get hold of your vat agent that will direct you about the exact process to 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? along with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and will need you to tick the appropriate reason as to why you have applied for deregistration in addition to offering the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will need to specify in the event you follow the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will usually reply in a period of 3 weeks. In case you do not get a reply then you definitely should remind them. If hmrc is content with the application then you will get 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 now have the ability to direct you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.
If certain situations compel you to make an application for cancellation of your vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department click for source. If all your papers are in order and if there aren’t any mistakes in the deregistration form you then ought to be out from the vat system in a month of filing vat deregistration.