If you're a vat registered trader in the United Kingdom that desires 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. Even though the process of canceling vat registration is pretty simple, you still need to take into account vat and file a final vat return.
There are several reasons that could compel you to leave the vat system. You can apply for deregistration of vat in case your business has collapsed and you have declared 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 business, there is a alternation 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 various 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 in case 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 vatverification.com. However, out of all 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'll not be permitted to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from VAT 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 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? along with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and will need you to tick the appropriate reason as to the reasons you have applied for deregistration in addition to providing 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 have to specify in the event you follow 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 the event you do not 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 receive 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 debt after deregistration.
If certain situations compel you to make an application for cancellation of your vat certificate then you'll need to follow proper procedure as laid down by hmrc vat department my link. If all your papers are in order and if there aren't any mistakes in the deregistration form you then should be out from the vat system in a month of filing for vat deregistration.