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

If you're a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a variety of reasons then you will want to learn all about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is pretty simple, you still need to take into account vat and file a final vat return.

There are many reasons that may compel one to come out of the vat system. It is possible to apply 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 within the next 1 year, you sell your organization, there is a alternation in the legal status of your business, you either join another vat group or disband your present 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 can allow you to be a legitimate candidate for vat deregistration.

You can also voluntarily step out of the vat tax system if 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, out of all above circumstances you will have to provide required proof in addition to convince hmrc vat as to the genuineness of the reason as to why 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 deregister yourself from www.vatnumbers.com you will need to contact your vat agent that will direct you about the exact process that must be followed so that you don't find yourself 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 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 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 have to specify if you follow the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will usually reply in a period of 3 weeks. In the event you do not receive a reply then you definitely should remind them. If hmrc is content with the application then you will 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 the vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and if there aren't any mistakes in your deregistration form then you ought to be out from the vat system in a month of filing for vat deregistration.