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Post Info TOPIC: Vat on Incorporation
bk


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Vat on Incorporation
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Hi ,

I have a client who at present is trading as a partnership and has just registered for vat (1st Feb) having hit the threshold. However, I have been informed that the partnership is ceasing and they (2 individuals) are going their separate ways. One of the partners is setting up a Ltd company, carrying on the same trade. Will he need to be vat registered initially, as the partnership was, or can he wait until he reaches the threshold again. My gut instinct is yes, but I thought I would run it by you. confuse

Many thanks

Debbie



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Debbie Brown-Kane

Oakmanor Accountancy

www.oakmanoraccountancy.com

e: debbie@oakmanoraccountancy.com
abacus12345


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I would say if there is a choice I'd go with keeping the registration. I don't definitely know the answer you're asking.

I do definitely know that you can, I don't know if you have to.

If he didn't he'd have to pay VAT on stock and assets when deregistering.

It's quiet in here today!!

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Johnny  - Owner of an overly-active keyboard. 

A man who can read, yet doesn't, is in no way wiser than a man who can't.

 
bk


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Thanks for your reply. I was asking if he had to remain vat registered, as this was part of the partnership, or if he could simply start the clock again as a Ltd company. Thanks again Debbie

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Debbie Brown-Kane

Oakmanor Accountancy

www.oakmanoraccountancy.com

e: debbie@oakmanoraccountancy.com
Cheshire


Master Book-keeper

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Hi Debbie
Certainly if it was moving from partnership to Limited it would need to either (1) transfer the existing VAT number (would they want to given any problems move with them/defaults etc) or (2) close existing and re-register immediately.

This one is going - partnership to sole trader (even if overnight) to limited (in my head at least). Am assuming all the trade/business will be the same, just that one of the partners will be getting a payout to clear orf so to speak. In which case I would say yes (as above), because otherwise the have their cake and eat it scenario comes into play and peeps would be changing the status left right and centre to avoid the VAT registration. BUT - to be sure I would be having a word with our Les - he may wander in and respond. Or you may wish to contact him - I can point you in his direction if you wish (le me know!)



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Leger


Master Book-keeper

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Hi Joanne

I knew that was the case with a sole trader >> Ltd and was wondering if it was also the case with a partnership >> Ltd.  It certainly makes sense.



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Cheshire


Master Book-keeper

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Its not often I make sense on a Sunday

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
bk


Senior Member

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Hi Joanne, Many thanks. You've confirmed what I thought. I just started over thinking with it being only one of the partners. Makes complete sense. Thanks again

__________________

Debbie Brown-Kane

Oakmanor Accountancy

www.oakmanoraccountancy.com

e: debbie@oakmanoraccountancy.com
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