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 everything about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you still need to account for vat and file a final vat return.
There are many reasons that could compel you to leave 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 therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 1 year, you sell your organization, there's a alternation in the legal status of the business, you either join another vat group or disband your existing vat group, or else you want to join the agricultural flat rate vat scheme. There are various 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 can also voluntarily step out of the vat tax system in case your taxable supplies are generally or even wholly zero rated. You can even do so if 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 the reasons you wish to cancel your vat registration. Once you are deregistered from vat then you will not be permitted to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from vatvalidation you will have to get hold of your vat agent that will direct you about the exact process to be followed so that you do not end up 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 require your vat registration number, business name and address, and will require you to tick the appropriate reason as to why you've applied for deregistration along with 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. 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 often reply in a time period of 3 weeks. In case you do not get a reply then you should remind them. If hmrc is satisfied with your application then you'll get a formal notice of vat cancellation on VAT35 form as well as receive a formal notice of exemption from registration on VAT8 form. Your vat agent will now have the ability to guide 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 the vat certificate then you'll need to follow proper procedure as laid down by hmrc vat department. If your entire papers are in order and if there aren't any mistakes in your deregistration form you then should be out from the vat system in a month of filing vat deregistration.