I'm sorry if this question has been asked previously but I couldn't find anything.
We have a client who has been sole director/shareholder of a limited company for 10+ years. The company doesn't have any assets other than a computer with very little wdv remaining. Similarly, the company doesn't have any liabilities other than the client's directors loan account. The company hasn't traded for the last 3 years (not dormant) as he was ill and then no longer wanted to go back to that particular trade but wanted to keep the company open as a just in case and carried on submitting nil VAT returns (flat rate scheme). There are no reserves in the company as these have been taken out over the years in dividends.
He has approached us this week to say that he has decided he wants the company to start trading again but with a completely different trade (the new trade will be the main and only trade so not additional to the above). He also wants to switch the company from the flat rate scheme to standard VAT. I don't see any reason why this would be an issue or he wouldn't be able to do this. Have I missed anything to say why he couldn't?
Any advice would be greatly appreciated as this is the first time I have came across this in my career.