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


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If you are a vat registered trader in the UK that wants to surrender your vat certificate for a variety of reasons then you need to learn all 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 many reasons that could compel one to leave the vat system. You can apply for deregistration of vat if 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’s a alternation in the legal status of your business, you either join another vat group or disband your existing vat group, or else 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 could make you a valid candidate for vat deregistration.

You may also voluntarily leave the vat tax system in case your taxable supplies are mainly or even 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 as well as convince hmrc vat regarding the genuineness of the reason as to why you want to cancel your vat registration. Once you are deregistered from vat then you’ll not be permitted to issue vat invoices or file vat returns.

In order for you to definitely deregister yourself from http://vatnumbers.com you will have to contact your vat agent that should direct you about the exact process that must be followed in order that you don’t 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 may require you to tick the right reason as to the reasons you have applied for deregistration along with offering the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets which you currently hold. You will also need to specify in the event you stick to the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will often reply within a period of 3 weeks. In case you don’t receive a reply then you definitely should remind them. If hmrc is satisfied with your application then you’ll receive 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 be able to guide 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 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 then you should be out from the vat system within a month of filing vat deregistration.