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 learn all about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you will still need to take into account vat and file your final vat return.
There are several reasons that could compel you to leave the vat system. It is possible to apply for deregistration of vat if your business has collapsed and you have declared insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 within the next 1 year, you sell your business, there's a alternation in the legal status of your business, you either join another vat group or disband your present vat group, or you intend 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 make you a valid candidate for vat deregistration.
You may also voluntarily step out of the vat tax system in case your taxable supplies are generally or perhaps wholly zero rated. You can even 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 as well as convince hmrc vat regarding the genuineness of the reason as to why you wish to cancel your vat registration. Once you're deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.
In order for you to deregister yourself from vatnumbers you will have to get hold of your vat agent that will direct you on the exact process that must be followed so that you do not end up 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 within this range. This form will need your vat registration number, business name and address, and may require you to tick the right reason as to why you've applied for 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 that you currently hold. Additionally, you will have 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 time period of 3 weeks. In the event you do not get a reply then you should remind them. If hmrc is satisfied with the application then you'll 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 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 if there aren't any mistakes in the deregistration form you then ought to be out of the vat system in a month of filing for vat deregistration.