Hi all
Quick question-
An individual registered on the flat rate VAT scheme transfers the business as a going concern to a new ltd company.
New VAT registration form & application to transfer VAT number has been sent in - I asked the VAT helpline whether I need to do a separate flat rate scheme application and they said no but they also said it may be worth checking with the new registration team
Can anyone confirm this to put my mind at rest?!
Thanks in advance!
Replies (2)
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HMRC should write to you to advise as a Transfer of a Going Concern [TOGC] that as the previous business was using the FRS then they would expect the new business would continue to do so unless you notify them that you no longer wish to or are ineligible.
It's a fairly standard letter sent by HMRC.
Malcolm McFarlin
I wonder what action HMRC
I wonder what action HMRC would take if the existing and prospective turnovers of the sole trader and limited company businesses were above the threshold for joinming the flat rate scheme but below the threshold at which an business already in the scheme is obliged to leave. Could HMRC prevent the new company from being registered for FRS?
I have a client who is faced with the dillema of whether to forego th e benefits of incorporation in order to preserve the FRS benefits.
Your comments would be greatly appreciated.
Peter Sylvesterson