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

If you’re 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 everything about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you will still need to account for vat and file a final vat return.

There are many reasons that may compel one to come out of the vat system. You can make an application for deregistration of vat if your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your business, there’s a change in the legal status of the business, you can either join another vat group or disband your present vat group, or you want to join the agricultural flat rate vat scheme. There are several other reasons which are specified by HM Revenue and Customs or hmrc vat department that can make you a legitimate candidate for vat deregistration.

You can also voluntarily step out of the vat tax system in case your taxable supplies are generally or even wholly zero rated. You can even do this if your input tax usually exceeds your output tax. However, in all the above circumstances you will need 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 are deregistered from vat then you will not be permitted to issue vat invoices or file vat returns.

For you to definitely deregister yourself from www.vatnumbers.com you will have to contact your vat agent that should direct you about the exact process to be followed in order that you do not end up 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? along with notice 700/1 among other notices in 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 have requested deregistration in addition to offering the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets which 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 receive 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 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 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 have been in order and if there are no mistakes in the deregistration form you then should be out of the vat system in a month of filing for vat deregistration.