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


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

There are several reasons that may compel you 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 organization, there’s a alternation in the legal status of the business, you either join another vat group or disband your existing vat group, or else you intend to join the agricultural flat rate vat scheme. There are several other reasons that 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 leave the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can even 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 why you want to cancel your vat registration. Once you’re deregistered from vat then you’ll not be allowed to issue vat invoices or file vat returns.

For you to deregister yourself from vat control you will have to contact your vat agent that should direct you on the exact process that must be followed so that you do not end up making errors. You will need to fill up 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 require your vat registration number, business name and address, and will require you to tick the right reason as to the reasons you’ve requested 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. You will also need to specify in the event you stick to 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 case you do not get a reply then you definitely should remind them. If hmrc is content with the application then you’ll get a formal notice of vat cancellation on VAT35 form as well as receive a formal notice of exemption from registration on VAT8 form. Your vat agent will now be able to direct 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 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 if there are no mistakes in the deregistration form then you should be out from the vat system in a month of filing vat deregistration.