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late vat registration

New client we need to sort out the past

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New client, we need to set up a limited company and vat register. However, he should have been registered as a sole trader and we would have TOGC the number upon incorporation. Should we now retrospectively register his sole trade then once the VAT number comes through then submit the TOGC form and move it all over to new co. In that way all the vat from date of registration would be one continuous number/submission requirements.

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13th Apr 2019 12:39

I think you are saying that the sole trader (i) exceeded the VAT registration threshold some time ago, (ii) failed to register at the proper time, and (iii) is still trading.
Looking at those facts, what do you think you ought to be advising the sole trader to do?
You also need to consider carefully your obligations under MLR 2017 & s330 PoCA 2002 re the failure to register at the appropriate time.
David

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By imbs
13th Apr 2019 13:03

Not quite there David. He hasn’t exceeded threshold at all but he has just started as a building contractor (previously subbie so never near threshold). Contract started a few weeks ago and he had built vat into his quote but didn’t get around to registering. So he now needs to reg but also due to the nature of his work he wants to incorporate at same time.

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13th Apr 2019 13:21

Well, if he hasn't charged any VAT as a sole trader, he can always revise his quotes. I'm not convinced that he needs to register but there's not enough information to say.

Would I recommend that the company succeed to a VAT registration that already has a record of default ? Probably not. I'd rather dump the bad record and start with a clean sheet.

But it's up to you. Or rather the trader. I don't think you've given the options enough consideration.

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to lionofludesch
14th Apr 2019 14:57

lionofludesch wrote:

Would I recommend that the company succeed to a VAT registration that already has a record of default ? Probably not. I'd rather dump the bad record and start with a clean sheet.

Rightly or wrongly, unless there was a specific reason, I wouldn’t normally advise to port the VRN over. Start afresh, just in case a random visit did turn something historic up.

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