Swapping a VAT registration when moving sole trader to Ltd Company

Swapping a VAT registration when moving sole...

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Current VAT registered sole trader moving to Ltd company and transferring biz as a going concern.

I see if he logs into his online services he can de-register and tick change of entity but does that then enable him to set up the new registration or must he start from scratch with a new Onine account and registration?

Given how many of these I've been through, I'm surprised this is the first time a client has asked me.  Previous clients handled it themselves without asking...I hope!

TIA folks

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Man of Kent
By Kent accountant
18th Feb 2013 17:12

VAT 68

Hi Paul

I've always taken the manual approach and completed a VAT 68 form.

Download it here

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By Tonykelly
18th Feb 2013 17:49

Separate legal entity

As the new company is a separate legal entity, you should apply for VAT registration as you would with any business registering for VAT.

The VAT 68 form is used to keep the old VAT number, but is not a substitute for VAT registration.

 

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Replying to scalloway:
Quack
By Constantly Confused
19th Feb 2013 08:46

But

Tonykelly wrote:

As the new company is a separate legal entity, you should apply for VAT registration as you would with any business registering for VAT.

The VAT 68 form is used to keep the old VAT number, but is not a substitute for VAT registration.

 

But note that the VAT 68 does replace the deregistration form (VAT 7?) for the old business.  So you need to register the company and either complete form VAT 7 or VAT 68 depending on whether you are transferring the number.

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By Debittomycredit
24th Jun 2022 10:00

Hopping onto this thread with a question on a similar topic ... VAT registered sole trader, TOGC to Limited company imminent (plasterer).

If I were to put on the VAT application for Ltd that it wants to KEEP the same VAT number, is it just the number that is kept and not the actual registration? I.e. I still need to deregister the sole trader business and then would start submitting new returns for the Ltd co?

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Replying to Debittomycredit:
Stepurhan
By stepurhan
24th Jun 2022 10:13

This thread is nine years old. Rules change.

When a thread is this old, you are generally better starting a new thread.

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Replying to stepurhan:
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By Debittomycredit
24th Jun 2022 10:46

Its irrelevant how old the thread or info in it is. Same topic, new question.

Anybody know? I'm wondering whether to advise keeping the same number or not. It seems tricky to me to get the cutoff date right when keeping the same number, feels messy. Leaning towards getting new.

Any comments?

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Replying to Debittomycredit:
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By Debittomycredit
24th Jun 2022 10:53

OK just spoke to HMRC who confirmed that it would just transfer the existing registration, returns would continue as normal.

So all transactions from sole trader and Ltd would have to go on the first return combined, unless he moved at the end of a quarter... With different softwares used for sole trader and new Ltd that would be a right faff.

Can't see any pros to keeping same VAT number for this particular business unless someone wants to enlighten me.

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Replying to Debittomycredit:
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By Taxguy96
27th Jun 2022 15:50

I tried transferring VAT number for a client, partnership incorporated into a Ltd company within a group structure. The TOGC has taken over 8 months and still not happened.

I'd get a new VAT no.

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Replying to Debittomycredit:
Stepurhan
By stepurhan
27th Jun 2022 16:24

Debittomycredit wrote:

Its irrelevant how old the thread or info in it is. Same topic, new question.

It is generally highly relevant since, as I already pointed out, rules change. But even assuming that it is irrelevant in this particular case (because the rules haven't changed) the reason you are probably not getting
Quote:

Any comments?


is that most regulars opening it will see the date of the query and assume it is has been resurrected by a spambot so they don't even get to your comment.

I think you will find that transferring the number does not allow you to submit a combined return for both sole trader and limited company by the way. For fairly obvious reasons if you think about it a bit.

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