Questions and Answers
Will my new limited company need a new VAT number?
I currently have a VAT number as a sole trader but I am going to start trading as a limited company soon. Will the company need to apply for its own VAT number?
Last updated 11 Dec 2025 | First published 1 Jul 2016
By Helen Wood, CA 1 min read
Self Employed
You can opt to transfer a VAT registration from one business to another. For example, if you are changing the status of a business (as you are - going from a sole trade to a limited company) or if you take over a business. In a take over situation, the previous owner of the business would not deregister for VAT purposes and it would be treated as a Transfer of a Going Concern if you take over the VAT registration.
However, you may want to consider the benefits of not transferring the VAT registration number to the company. Firstly, if you have a history of filing or paying late, that legacy will be inherited by the company. Furthermore, if you are operating the Flat Rate Scheme, by opting for a new registration, you are able to take advantage of the 1% discount to your rate in the first year of VAT registration.
If you would like any assistance in managing your new company, please call TaxAssist Accountants on 0800 0523 555 or use our online contact form here.
Frequently Asked Questions
If you want to become VAT registered, you can register with HMRC online, or ask your accountant to do this for you. You will need to have some information to hand, including your business bank account details, company registration number (if applicable), your Unique Tax Reference (UTR) and/or your National Insurance number. You will also need to know your annual turnover and information relating to you and your business' taxes.
Once you're registered you'll receive a VAT registration number and be able to set up an online business tax and VAT account.
Firstly, it's not uncommon for businesses to creep over the VAT threshold and not realise they should have registered for VAT. Registering therefore reduces the chance of missing this deadline and being liable to penalties. Being VAT registered also allows you to claim back VAT on your purchases and it is possible that this could be advanatgeous for your business, depending on what you're selling.
A VAT Registration Number is mandatory for businesses exceeding the VAT threshold. It uniquely identifies a business for VAT purposes and must be included on all VAT invoices and returns. To obtain a VAT Registration Number, businesses need to apply through Revenue and provide necessary details about their operations.
Last updated 11 Dec 2025 | First published 1 Jul 2016
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Helen Wood, CA
Helen is a qualified chartered accountant (CA) and joined TaxAssist in 2025 following three years as a freelance content writer for clients in the tax and accounting publishing sector. Prior to this, She spent 17 years at Big Four and Top 10 accountancy firms. Helen writes clear and helpful articles on tax and accounting for businesses and individuals.
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