Incorporation and VAT registration

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? 

1st July 2015

If it meets certain conditions, the company may need to register for VAT from the date of transfer from the sole trade. 

You can opt to transfer a VAT registration from one business to another. For example, if you are changing the status of a business (like you are- going from sole trade to limited company) or if you take over a business and want to keep using its VAT number. The previous owner of the VAT number does not need to deregister. 

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 get in contact with us and we'll put you in touch with your local TaxAssist Accountant.

By Jo Nockels

Disclaimer: Advice shared in this blog is intended to inform rather than advise. 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 forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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