VAT sole to corporate again!

VAT sole to corporate again!

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I expect this scenario has been visited on numerous occasions, but after reviewing the answers posted previously on this and other sites, I am still in two minds as to whether the 'clock' is reset to zero once the limited company is in place, or does one look back to the pre-incorporation fees (up to 12 months ago).

The nub of the argument seems to be whether the TOGC rules apply. In this simple case, it is a personal business, with little to distinguish the trade before and after the change of status.

Any up-to-date advice would be welcome. One is not trying to avoid VAT, just trying to avoid unnecessary registration!

paul goodman

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By theaardvark
30th Aug 2007 10:29

Transferor VAT Registered?
It will depend upon whether the Sole Trader was registered for VAT prior to the incorporation.

If he/she was then the Ltd company must include the Sole Trader's income. If he/she wasn't then the Ltd company does not include the Sole Trader's income.


Regards

Paul Taylor
Senior VAT Consultant
Dains

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