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Business Transfer and VAT number

Please help me with advise.

Company (Ltd) soon will have new 100% shareholder and director.  At the moment company has VAT number and send VAT returns every 3 months.

I know that after shares will be transfered and new director registered in Companies House , company has to inform HMRC about changes.

But what will happen with VAT number?   Somewhere I read that company must cancel VAT number and HMRC will give new one?

Could company keep previous number as it was all time?  

If number will be canceled, and new number issued - than how we will make invoices in time between?  Amounts will be without VAT ?

Thanks.

Replies

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you can retain the old VAT number

The only time you wouldn't is when the old 'entity' is (or may be) in arrears- ie on aquisition of a third party business.

Thanks (1)

?

As far as I know, there is no requirement to notify HMRC of a change in directors and/or shareholders (since these details are not provided on registration, how can it be possible to notify a change?).

And even if you did choose to volunteer such info, there is as far as I am aware no facility to change the VAT registration number - only on a sale/acquisition of the underlying business would you be able to contemplate such a change.

As always, I'm happy to be proved wrong, but the suggestion is new to me!

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You need to complete a form VAT 68

Have a look at the HMRC website http://www.hmrc.gov.uk/vat/start/register/takeovers.htm#5 which talks about this. If you want to transfer the VAT registration number over then you may be able to, but there is a process that you have to follow.

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Basic misunderstanding

Georgina Rollings wrote:

Have a look at the HMRC website http://www.hmrc.gov.uk/vat/start/register/takeovers.htm#5 which talks about this. If you want to transfer the VAT registration number over then you may be able to, but there is a process that you have to follow.

The sale of shares in a company is not the transfer of a business for VAT purposes.

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Why would you want to change the VAT number?
The VAT reg applies to the company, not the director/shareholders. One thing for the new owner to ensure is to have an indemnity or warranty from the previous owner for any old VAT errors/penalties that might turn up in future.

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Thank you for reply.

No, company definitely don't want to change VAT number.

The question is – if company changes director and shareholder, than should company complete form 68 or not, and does information in http://www.hmrc.gov.uk/vat/start/register/takeovers.htm#5 applies to this situation ???

 

Thanks.

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No

It is the company that is registered, there is no transfer of business, therefore VAT 68 is not in point. Neither is the HMRC guidance referred to.

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New ownership of Company

Yes this is a tricky one. I have seen adverts from people wanting to buy a company with VAT number and a bit of age. If it has a bank account even a better price can be obtained.

You do not have to use much imagination to work out that you can make a VAT reclaim or get up to some other type of fraud.

I am an honest bloke that is why I have too much debt.

If you are going to do something dishonest its best if you do not have roots here and you have a very common name and even one of these interchangeable names.

 

 

 

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