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 know all about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is pretty simple, you will still need to take into account vat and file your final vat return.
There are several reasons that may compel you to come out of the vat system. It is possible to make an application for deregistration of vat in case your business has collapsed and you’ve 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 organization, there’s a change in the legal status of the business, you can 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 legitimate candidate for vat deregistration.
You can also voluntarily step out of the vat tax system if your taxable supplies are mainly or even wholly zero rated. You can also do this if your input tax usually exceeds your output tax. 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’re deregistered from vat then you’ll not be allowed to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from www.vatcontrol.com you will have to get hold of your vat agent that will guide you about the exact process that must be followed so that you do not find yourself making errors. You will need 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 will need you to tick the appropriate reason as to the reasons 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 that you currently hold. You will also need 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 often reply in a period of 3 weeks. In case you don’t receive a reply then you definitely should remind them. If hmrc is satisfied with your application then you’ll receive a formal notice of vat cancellation on VAT35 form and also 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 make an application for cancellation of your vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and if there are no mistakes in your deregistration form then you should be out of the vat system in a month of filing for vat deregistration.