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

If you are 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 everything 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 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 organization, there is a alternation in the legal status of the business, you either join another vat group or disband your existing 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 if your taxable supplies are mainly or perhaps wholly zero rated. You can also do so if 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 want to cancel your vat registration. Once you're deregistered from vat then you will not be permitted to issue vat invoices or file vat returns.

In order for you to deregister yourself from vatcontrol you will have to contact your vat agent that will direct you on the exact process to be followed in order that you do not end up making errors. You will need to fill up 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 in 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've applied for deregistration in addition to providing the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will have to specify in the event you follow the vat cash accounting system.

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