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 will want to learn everything about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is quite simple, you still have to take into account vat and file a final vat return.
There are many reasons that may compel you to leave the vat system. It is possible to make an application 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 within the next 1 year, you sell your organization, there is a change 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 that are specified by HM Revenue and Customs or hmrc vat department that can allow you to be a valid candidate for vat deregistration.
You can also voluntarily leave the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can even do so in case your input tax usually exceeds your output tax. However, in all the above circumstances you will need to provide required proof in addition to convince hmrc vat as to the genuineness of the reason as to why you wish to cancel your vat registration. Once you’re deregistered from vat then you’ll no longer be allowed to issue vat invoices or file vat returns.
In order for you to deregister yourself from https://vatcontrol.com you will have to contact your vat agent that will guide you about the exact process to be followed in order that you do not find yourself 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 may need you to tick the right reason as to the reasons you’ve requested deregistration in addition to providing the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will have to specify in the event you stick to the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will usually reply in a time period of 3 weeks. In case you do not receive a reply then you definitely should remind them. If hmrc is satisfied 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 be able to direct 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 your vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department. If all your papers are in order and when there aren’t any mistakes in the deregistration form then you ought to be out from the vat system within a month of filing for vat deregistration.