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 all about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is quite simple, you will still have to take into account vat and file a final vat return.
There are several reasons that could compel you to come out of the vat system. You can apply 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 12 months, you sell your business, there is a alternation in the legal status of your business, you can either join another vat group or disband your existing vat group, or else you intend 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 make you a valid candidate for vat deregistration.
You can also voluntarily leave the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can also 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 want 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 deregister yourself from vat control you will have to contact your vat agent that should direct you on 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? together with notice 700/1 among other notices within this range. This form will need your vat registration number, business name and address, and will require you to tick the appropriate reason as to why you’ve requested 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 which you currently hold. Additionally, you will need to specify if 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 get a reply then you 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 have the ability to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts 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 ought to be out of the vat system within a month of filing for vat deregistration.