Warning: Illegal string offset 'box_blank' in /home/webhotel/public_html/dkrill.com/wp-content/plugins/seo-smart-links-business/seo-smart-links-business.php on line 634

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


Warning: Illegal string offset 'box_blank' in /home/webhotel/public_html/dkrill.com/wp-content/plugins/seo-smart-links-business/seo-smart-links-business.php on line 634

If you are 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 learn all about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is pretty simple, you will still have to take into account vat and file a final vat return.

There are several reasons that could compel you to come out of 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 alternation in the legal status of the business, you can either join another vat group or disband your existing vat group, or you intend 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 legitimate candidate for vat deregistration.

You can also voluntarily leave the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can also do this in case your input tax usually exceeds your output tax. However, in all the above circumstances you will need to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you’re deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.

In order for you to definitely deregister yourself from vat numbers you will need to get hold of your vat agent that should direct you about the exact process that must be followed so that you don’t end up 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 will need you to tick the right reason as to why you have requested deregistration along with 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. 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 usually reply within a time period of 3 weeks. In the event you don’t get a reply then you should remind them. If hmrc is content with your application then you will receive a formal notice of vat cancellation on VAT35 form and also get 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 debt 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 your entire papers have been in order and when there aren’t any mistakes in your deregistration form you then should be out from the vat system in a month of filing vat deregistration.