Know all about the vat deregistration process to cancel your vat number

 

If you’re a vat registered trader in the UK that wants to surrender your vat certificate for a variety of reasons then you will want to know everything about the http://vatregistrationnumber.com vat deregistration process to cancel your vat number. Even though the process of 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 leave the vat system. You can apply for deregistration of vat if your business has collapsed and you’ve 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 12 months, you sell your business, 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 intend 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 allow you to be a valid candidate for vat deregistration.

You may also voluntarily leave the vat tax system if your taxable supplies are mainly or perhaps 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 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.

In order for you to definitely deregister yourself from you will have to get hold of your vat agent that should direct you about the exact process to be followed so that you do not find yourself making errors. You will need to fill 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 may require you to tick the appropriate reason as to why you have requested deregistration along with 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 have 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 the event 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 now be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain circumstances compel you to apply for cancellation of the vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department. If your entire papers are in order and if there are no mistakes in the deregistration form then you ought to be out from the vat system within a month of filing vat deregistration.