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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 wants to surrender your vat certificate for a variety of reasons then you need to know all about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you will still have to account for vat and file your final vat return.

There are several reasons that may compel one to come out of the vat system. You can make an application for deregistration of vat in case 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 within the next 12 months, you sell your business, there’s a change in the legal status of your business, you can either join another vat group or disband your present vat group, or else you want to join the agricultural flat rate vat scheme. There are various other reasons which are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a legitimate candidate for vat deregistration.

You may also voluntarily leave the vat tax system if your taxable supplies are mainly or even wholly zero rated. You can even do so 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 as to the genuineness of the reason as to why 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 www.vatvalidation.com you will need to get hold of your vat agent that will direct you on the exact process that must be followed in order that you do not 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? along with notice 700/1 among other notices in this range. This form will need your vat registration number, business name and address, and will require you to tick the appropriate reason as to the reasons you’ve 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 which you currently hold. You will also 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 period of 3 weeks. In the event you do not get a reply then you should remind them. If hmrc is content with the application then you will 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 have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain situations compel you to make an application for cancellation of your vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and when there aren’t any mistakes in the deregistration form then you should be out of the vat system in a month of filing for vat deregistration.