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Option To Tax

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I have been a partner in a business (with one other partner) since 2010. My entire income has always come from the partnership. I purchased a new-build commercial property (£100,000+VAT), intending to run the partnership from there. My accountant registered me for VAT in the form of an Option To Tax in order that the VAT on the purchase price could be reclaimed. The partnership is not VAT registered as turnover is below the threshold. My accountant informed me that I must charge the partnerhip rent + VAT.

Due to the Covid-19 pandemic, my partner and I have stopped trading. The partnership has ended permenantly. As such, there has been no income or expenditure on the property, so nil returns have been submitted. If I keep submitting nil returns, will HMRC want back the VAT reclaimed when the property was purchased?

Also, if I was to set up as a sole trader am I stuck in the position of having to charge VAT on anything I earn? Is there any way of adding my wife to the VAT registration in order that I am not personally VAT-registered?

I have called HMRC and asked these questions, but the call operator I spoke to did not know.



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