If you’re a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a variety of reasons then you need to learn all about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is quite simple, you will still have to take into account vat and file your final vat return.
There are several reasons that could compel you to come out of the vat system. It is possible to 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 can either join another vat group or disband your existing vat group, or 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 could make you a valid candidate for vat deregistration.
You may also voluntarily leave the vat tax system in case your taxable supplies are generally or even wholly zero rated. You can also do so in case your input tax usually exceeds your output tax. 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 why you want to cancel your vat registration. Once you are deregistered from vat then you will no longer be allowed to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from https://vatcontrol.com you will have to get hold of 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 have to fill 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 require you to tick the appropriate reason as to why you have requested deregistration in addition to offering the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will need to specify if you stick to the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will often reply in a time period of 3 weeks. In case you don’t get a reply then you 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 have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain circumstances 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 are in order and if there are no mistakes in the deregistration form then you should be out from the vat system in a month of filing vat deregistration.