Know all about the vat deregistration process to cancel your vat number
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 will want to know everything about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is quite simple, you still need to take into account vat and file your final vat return.
There are many reasons that could compel one to come out of the vat system. You can make an application 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 12 months, you sell your organization, there’s a alternation in the legal status of your business, you either join another vat group or disband your present 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 make you a legitimate candidate for vat deregistration.
You can also voluntarily leave the vat tax system in case your taxable supplies are generally or perhaps wholly zero rated. You can also do so if your input tax usually exceeds your output tax vatverification.com. However, in all the 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 are deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.
For you to definitely deregister yourself from VAT you will need to contact your vat agent that will direct you about the exact process that must be followed in order that you don’t end up making errors. You will need to fill up the VAT 7 vat form once 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 need your vat registration number, business name and address, and will require you to tick the right reason as to the reasons you have applied for deregistration in addition to 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. 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 case you do not get 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 as well as get 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 apply for cancellation of the vat certificate then you will need to follow proper procedure as laid down by hmrc vat department blog here. If your entire papers have been in order and if there aren’t any mistakes in the deregistration form you then ought to be out of the vat system within a month of filing for vat deregistration.