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

If you are a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a variety of reasons then you will want to know all about the vatregistrationnumber.com vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you will 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. 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 in the next 1 year, you sell your business, there’s a alternation in the legal status of the 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 if your taxable supplies are generally or even wholly zero rated. You can also do this in case your input tax usually exceeds your output tax. However, in all the above circumstances you will have to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to the reasons you want to cancel your vat registration. Once you’re deregistered from vat then you’ll not be permitted to issue vat invoices or file vat returns.

For you to deregister yourself from you will need to get hold of your vat agent that will guide you on the exact process to be followed in order that you don’t 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? along with notice 700/1 among other notices within this range. This form will need your vat registration number, business name and address, and will need you to tick the appropriate reason as to why you have requested deregistration along with 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. You will also have to specify if you follow the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will often reply within a time period of 3 weeks. In case you do not get a reply then you definitely should remind them. If hmrc is content with your application then you will 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 be able 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’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 then you should be out of the vat system within a month of filing vat deregistration.