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


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If you’re a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you need to learn everything about the vatregistrationnumber vat deregistration process to cancel your vat number. Even though 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 many reasons that could compel one to come out of the vat system. It is possible to make an application for deregistration of vat in case 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 change 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 various other reasons that are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a legitimate candidate for vat deregistration.

You can also voluntarily step out of the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can also do this if 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 as to the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you are deregistered from vat then you’ll no longer be permitted to issue vat invoices or file vat returns.

For you to deregister yourself from you will need to get hold of your vat agent that will direct you about the exact process to be followed so that you do not 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 in this range. This form will require your vat registration number, business name and address, and will require you to tick the appropriate reason as to the reasons you have applied for deregistration along with providing the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will need to specify if you follow the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In case you do not receive a reply then you definitely should remind them. If hmrc is satisfied with the application then you’ll get 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 now have the ability to direct 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 have to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and when there are no mistakes in the deregistration form then you ought to be out from the vat system within a month of filing for vat deregistration.