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 learn all about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you still have to account for vat and file your final vat return.
There are several reasons that could compel one to come out of the vat system. You can apply for deregistration of vat in case 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 in the next 12 months, 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 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 could make you a legitimate candidate for vat deregistration.
You can also voluntarily step out of the vat tax system if your taxable supplies are generally or even 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 need to provide required proof in addition to convince hmrc vat as to 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 no longer be permitted to issue vat invoices or file vat returns.
In order for you to deregister yourself from vatnumbers you will have to contact your vat agent that will guide you on the exact process that must be followed so that you do not find yourself making errors. You will need 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 right reason as to the reasons you have requested deregistration along with offering the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets that you currently hold. You will also need to specify in the event you follow the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In case you don’t 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 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 bad debts after deregistration.
If certain situations compel you to apply for cancellation of your vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and when there are no mistakes in your deregistration form you then ought to be out from the vat system in a month of filing for vat deregistration.