We have a VAT registered Scottish partnership with 2 partners. One partner has since passed away, leaving the remaining partner to carry on the trade themselves. In real, practical terms, the remaining partner ran the business themselves anyway for the last few years as the partner who had passed away was unable to work.
HMRC has said that in this circumstance, the partnership is automatically dissolved and the remaining partner must re-register as self employed as a sole trader, and presumably re-register for VAT.
Presumably the trade is transferred to the remaining partner as a Transfer of Going Concern (TOGC).
I have also seen on HMRC that we can transfer the VAT registration using form VAT68; from the partnership to the sole trade.
We also run the bookkeeping, VAT and accounts on Xero. Presumably I can keep the same account running as it is the same business and trade for all intents and purposes.
As a Scottish Partnership is a separate legal entity, should we close the bank and re-open as a sole trade, or can we retain this?
Is there anything else that I have overlooked that I need to consider?