I have a client who recently de-registered for VAT and was happily heading towards retirement.
Two months later, he has advised that his services are back in demand and he could do £160,000 of sales in the next 12 months and he is worried about his VAT position.
I have two queries as follows:
1.) Presumably he does not need to re-register for VAT until his turnover goes over £83,000 in a rolling 12 month period. The turnover for the last few months before de-registering was only a few thousand, hence the de-registration.
2.) If he has say £80,000 of turnover in the sole trader business and then the balance in a newly formed limited company. Does his turnover in the previous business need to be considered for the company VAT position even though the sole trader business was not VAT registered at the time of the transfer to the limited company.
Any advise would be greatly appreciated as I have found this point difficult to research.