Sole trader incorporation and VAT registration | AccountingWEB

Sole trader incorporation and VAT registration

Sole trader's cumulative annual turnover will exceed £60k at 31/7/05. So VAT registration is required. Also incorporating, preferably at the same time, i.e. 1/9/05.

If the sole trader doesn't register but the Ltd Co does from the transfer date, can the co still reclaim input vat on stocks and equipment on hand, and the prior 6 months services?

Alternatively, does he have to register for vat as a sole trader, perhaps for just 1 day, to guarantee input vat reclamation and then do transfer of vat number for the incorporation?

I don't want to jeopardise losing the pre-registration input vat claim, but likewise would prefer not to have the hassle of too much VAT paperwork (i.e. 2 registration and 1 dereg).

Ken Howard

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VAT paid and claimed before registration

frauke |