As of March 9th i registered for vat as a sole trader. From 1st April I then became limited company. I've transferred the vat registration without a problem.
My question to you helpful lot is how should i journal the vat liability so I can do the vat return in my software correctly?
Love the Forum and often look at the questions posed and how supportive you all are.
Why did you even bother setting up the VAT for less than a month before incorporating the business?
I expect you need to do the VAT return for the sole trader and settle any liability to give you a clean slate to start the VAT throught the ltd company.
Ideally you'll need your Accountant to give you a closing balance sheet for the sole trader, highlighting what was and wasn't sold to the limited company. If you don't have this information and need a "quick fix" then I'd
Dr Suspense Cr Vat Payable
While you waited for the information I mentioned above.
hth
Edit: Sorry that's not detailed enough. If you're using Sage I'd post manual adjustments for the Sales / Purchases figures. For the box 6 and 7 - there won't be an entry for box 1 & 4 it will post to manual adjustments.
-- Edited by ADAS on Thursday 31st of May 2012 09:24:57 AM
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
I had to register for VAT as I'd reached the threshold. It would have been great to do it all on 1st April but it didn't work out that way. I was advised to transfer the vat registration to the limited company and in the HMRC confirmation it says as the limited company is taking over registration it then becomes liable for any vat due.
