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 2016

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: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here 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 information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Call us today to make an appointment at your local office

0800 0523 555

Or submit an enquiry