VAT and Start up Costs

UK Discussion in 'General Accountancy Discussion' started by JazzyBear, Feb 2, 2018.

  1. JazzyBear

    JazzyBear

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    Ive been operating as a self employed sole trader for a number of years, trading under the VAT threshold. Its looking likely that a contract coming our way will require us registering for VAT.

    We have formed a limited company and will one day start using it as it will suit us better then being a sole trader.

    I understand that once we register for VAT we can claim VAT back on start up costs going back 4 years. 4 years of some capital purchases we still own would mean quite a lump of VAT back.

    MY question is. Should I register for VAT as an individual and claim that VAT back before i start trading with the limited company Or can the LTD company once it starts trading, register for VAT and bring those items (bought while I was a sole trader) on to its books and reclaim the VAT?

    Thanks.
     
    JazzyBear, Feb 2, 2018
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  2. JazzyBear

    JazzyBear

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    Think I'll find somewhere else for my questions. See ya.
     
    JazzyBear, Feb 10, 2018
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  3. JazzyBear

    Becky Administrator

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    Hi @JazzyBear, sorry we don't have many VAT specialists. My own knowledge is limited, but AFAIK you can transfer VAT registration from one entity to another - so it might be a good idea to register as a sole trader to claim back the start up costs, then transfer the registration to the company.

    https://www.gov.uk/vat-registration/transfer-registration

    Check out part 6 of that guide too - might be useful. If you are unsure then it might be a good idea to seek professional advice and / or call HMRC.
     
    Becky, Feb 13, 2018
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