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

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. Although 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 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 and you expect them to drop below the vat threshold limit of ?70,000 within the next 1 year, you sell your organization, there’s a alternation in the legal status of your business, you can 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 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 if your input tax usually exceeds your output tax. However, in all the above circumstances you will need 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 are deregistered from vat then you’ll no longer be permitted to issue vat invoices or file vat returns.

For you to definitely deregister yourself from http://vatcontrol.com you will have to contact your vat agent that should direct you on the exact process to be followed in order that you don’t find yourself making errors. You will have to fill the VAT 7 vat form once 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 may need you to tick the appropriate reason as to the reasons you’ve applied for deregistration in addition to providing the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will have to specify in the event you stick to the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply in a time period of 3 weeks. In the event you don’t receive a reply then you definitely should remind them. If hmrc is content with the application then you will receive 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 be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain circumstances compel you to make an application for cancellation of the 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 when there aren’t any mistakes in the deregistration form then you should be out of the vat system within a month of filing for vat deregistration.