I've just recently incorporated from a sole trader business over to a ltd. company and I'm struggling to find the answer to how business expenses (relating to the non vat registered ltd. company) are accounted for.
As a sole trader, who wasn't vat registered, I was able to claim the whole of any legitimate expense against income; i.e. net profit = gross income - total expenses (which include any vat charged on those expenses).
Does this same principle apply to a non vat registered ltd. company? i.e. can vat essentially be ignored if you're not vat registered? (and trading under the vat threshold obviously)
Thanks in advance for your help!
Regards,
Ian
Replies (4)
Please login or register to join the discussion.
Whilst not wishing to cause any offence
I've just fallen off my perch - a one-line response from Basil :)