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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 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. Although the procedure for canceling vat registration is pretty simple, you still need to take into account vat and file your final vat return.

There are many 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’ve declared insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 within the next 12 months, you sell your organization, 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 else 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 could 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 also do this if your input tax usually exceeds your output tax. However, out of all above circumstances you will need to provide required proof in addition to convince hmrc vat regarding 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 vatcontrol you will need to get hold of your vat agent that should guide you about the exact process to be followed in order that you don’t find yourself making errors. You will have to fill the VAT 7 vat form once 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 need you to tick the appropriate reason as to why you’ve applied for deregistration along with 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. Additionally, you will 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 usually reply within a period of 3 weeks. In case you do not get a reply then you definitely should remind them. If hmrc is satisfied with the application then you will 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 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 apply for cancellation of the vat certificate then you will have to follow proper procedure as laid down by hmrc vat department. If your entire papers have been in order and when there are no mistakes in your deregistration form you then ought to be out of the vat system in a month of filing for vat deregistration.