Should I VAT register and setup LTD or Not?

Should I VAT register and setup LTD or Not?

Didn't find your answer?

I am the owner of a commercial property.  I am going to convert the upper floors into two flats.  Should I be paying VAT on goods and services required for the conversion?  If I must pay VAT, can I claim it back?

Should I VAT register and register as a limited company, do all the renovation through that company and then claim the VAT back?  Needless to say, I clueless and need to know what my options are.  

I do not intent to sell the flats, I will rent the flats.  

I would appreciate any advice, thanks. 

Replies (2)

Please login or register to join the discussion.

avatar
By User deleted
03rd Aug 2013 08:58

No point in registering

Rental of flats will be exempt so if the intention is to let no recovery of input VAT. But much of the conversion work should be lower-rated.

Thanks (0)
avatar
By shaun king
03rd Aug 2013 12:05

You could

Grant a major interest in the new flats (21yr plus lease with suitable break clauses) and this will be Zero rated and you can then recover the VAT incurred on the conversion costs. Any subsequent grants will be exempt so you can de register after 1st grant of a major interest.

Thanks (1)