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


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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 know all about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is quite simple, you still need to take into account vat and file your final vat return.

There are many reasons that may compel one to come out of the vat system. You can apply for deregistration of vat if your business has collapsed and you have declared 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 business, there’s a change in the legal status of the business, you can either join another vat group or disband your present 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 could allow you to be a valid candidate for vat deregistration.

You can also voluntarily leave the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can even do this 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 regarding 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 not be allowed to issue vat invoices or file vat returns.

For you to deregister yourself from vatregistrationnumber you will have to get hold of your vat agent that will guide you on the exact process to be followed so that you don’t end up making errors. You will have 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 within this range. This form will require your vat registration number, business name and address, and will need you to tick the appropriate reason as to why you have requested deregistration in addition to 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 stick to the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will often reply in a 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 get a formal notice of vat cancellation on VAT35 form and also 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 situations compel you to apply for cancellation of the vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department. If all your papers are in order and when there are no mistakes in the deregistration form then you should be out from the vat system within a month of filing for vat deregistration.