If you are a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you will want to know everything about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you will still need to take into account vat and file your final vat return.
There are many reasons that could compel you to leave the vat system. You can make an application for deregistration of vat if your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 within the next 1 year, you sell your organization, there is a change in the legal status of your business, you 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 several 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 in case your taxable supplies are generally or perhaps wholly zero rated. You can even do this 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 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 allowed to issue vat invoices or file vat returns.
For you to definitely deregister yourself from vatcontrol you will need to contact your vat agent that should guide you on the exact process that must be followed in order that you don’t end up 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? along with notice 700/1 among other notices within this range. This form will require 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. Additionally, you will need to mention the gross value including vat of stocks and assets that you currently hold. You will also have to specify in the event you stick to the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will often reply in a period of 3 weeks. In the event you don’t get 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 be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.
If certain situations compel you to apply for cancellation of the vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If your entire papers are in order and if there aren’t any mistakes in your deregistration form then you should be out of the vat system in a month of filing for vat deregistration.