If you are a vat registered trader in the United Kingdom that wants 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 pretty simple, you will still need to account for vat and file a final vat return.
There are several reasons that could compel one to leave the vat system. You can make an application for deregistration of vat in case your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your business, there is a change in the legal status of the business, you can either join another vat group or disband your existing vat group, or you want 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 could allow you to be a legitimate candidate for vat deregistration.
You may also voluntarily leave the vat tax system if your taxable supplies are generally or even wholly zero rated. You can also do so in case your input tax usually exceeds your output tax vatverification. However, out of all above circumstances you will need to provide required proof as well as convince hmrc vat as to the genuineness of the reason as to the reasons you want to cancel your vat registration. Once you’re deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.
For you to deregister yourself from VAT you will need to contact your vat agent that should guide you on the exact process that must be followed in order that you don’t find yourself making errors. You will have to fill up the VAT 7 vat form after you have read and understood vat notice 700/11 on ?Canceling your registration? together with notice 700/1 among other notices within 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’ve 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 within a time period of 3 weeks. In case you do not get a reply then you definitely should remind them. If hmrc is satisfied with your application then you’ll get a formal notice of vat cancellation on VAT35 form as well as get a formal notice of exemption from registration on VAT8 form. Your vat agent will now be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.
If certain circumstances 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 more. If all your papers are in order and if there are no mistakes in the deregistration form then you ought to be out from the vat system in a month of filing for vat deregistration.