can i run this vat question by you ......

can i run this vat question by you ......

Didn't find your answer?

I have an existing limited company client selling standard rated goods but under the threshold at mo. (t/o [£80k] £30k - see comments below).

They are looking at taking over an unrelated business (zero rated supplies, (t/o £140k)) and want to have both in same limited company

looking at registering the company for vat.....any problems with this before i advise????????????

thanks

Replies (8)

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Chris M
By mr. mischief
28th Aug 2012 22:02

Possibly

Yes, they might be handing over up to £12k per year in VAT for no good reason, not enough information to know just yet.

If the standard rated sales are wholly or substantially to VAT-registered customers, no problem.  The extra 20% they'll now be adding on can be reclaimed back by most of the customers.  But at the other extreme if this is retail to the general public then £12,800 less claimable input tax is the cost of this decision.  Note the limit is £77k not £80k.

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By Outofpractice
28th Aug 2012 22:07

Agreed
Agree with the above. Also note if you mean their t/o is 80k they should be registered for VAT anyway regardless of acquisition

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By cathhammond
28th Aug 2012 23:01

Hi, it's 30k not 80 sorry, getting a bit late in the day!
Will get more info re expenses with vat element.... But poss consider running 2 separate business, registering zero rated to claim any vat back (if worth it once more info available...)??
I will check if existing business being taken over is already vat reg.....

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By petersaxton
29th Aug 2012 06:59

Why same company?

Why have the unrelated business in the same company?

Is the turnover of the unrelated business £140k? Just checking!

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By cathhammond
29th Aug 2012 09:26

Hi Peter, was what client was thinking, but as my above post, will suggest separate(once have more info), meeting ths week. They have "new " business accounts so can check the 140k! I do have a question- as this one is ongoing vat reg business- keep vat reg or new one (new business?)

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By petersaxton
29th Aug 2012 09:31

Why change?

If it's a VAT registered business then why do you need a new number?

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By cathhammond
29th Aug 2012 10:23

Don't, but may choose to.
Thanks all for input
Cath

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By User deleted
29th Aug 2012 13:08

If I was acquiring an existing VAT registered business...

... I would not keep the VAT number.

But although generally and optimist, when it comes to tax, especially VAT, i am a pessimist!

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