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is VAT registration necessary?

VAT registered IT Contractor was trading till Feb 2019, then ceased trading as contract ended

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VAT registered IT Contractor was trading till Feb 2019, then ceased trading as contract ended.Consequently VAT deregistered and PAYE was ceased.

but the company is still active he is going to start trading with his company again from October 2019.

Question is does he need to register for VAT when starts trading? I mean does this fall under TOGC

or he can wait till the sales crosses the VAT threshold and then register for VAT

Replies (7)

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RLI
By lionofludesch
19th Sep 2019 17:15

TOGC ? The business has been owned by the company throughout - who has transferred the business and to whom ?

What are the company's sales in the last 12 months ?

Maybe more importantly, is his customer VAT registered ?

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By mrme89
19th Sep 2019 17:51

Why would TOGC rules apply?!

12 month rolling turnover test applies.

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Replying to mrme89:
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By jaha12
20th Sep 2019 12:23

mrme89 wrote:

Why would TOGC rules apply?!

12 month rolling turnover test applies.

12 months start from date of desegregation Feb 2019? or last 12 months(October 18 to Sep 19) before starting trading again (from Oct 2019)?

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chips_at_mattersey
By Les Howard
19th Sep 2019 21:15

Check the guidance on re-registration in VATREG02450.

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Replying to leshoward:
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By jaha12
20th Sep 2019 12:19

leshoward wrote:

Check the guidance on re-registration in VATREG02450.


so that means he does not need to register right now. He needs to register when sales hits threshold in 3-4 months time?
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Replying to jaha12:
RLI
By lionofludesch
20th Sep 2019 14:24

jaha12 wrote:

leshoward wrote:

Check the guidance on re-registration in VATREG02450.

so that means he does not need to register right now. He needs to register when sales hits threshold in 3-4 months time?

No - when his sales in the last twelve months cross the threshold.

Thanks (1)
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By doubletrouble
20th Sep 2019 19:53

My understanding is that as long as de-registration was correct then previous sales are disregarded and the rolling turnover is reset and will start again from the date of de- registration

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