Reply To: Can I backdate VAT switching from sole trader to Ltd company?

Forum Categories VAT REGISTRATION Can I backdate VAT switching from sole trader to Ltd company? Reply To: Can I backdate VAT switching from sole trader to Ltd company?

#56131
Trevor S
Participant

The taxable supplies that exceeded the VAT registration threshold were made by the sole trader business.  You cannot retrospectively “reassign” those sales to a limited company, especially one which didn’t even exist at the time that they were made!  So I think that your new accountant is right – you need to register the sole trader business.

As for the limited company, you potentially have a choice.  If you will need to register soon/straight away, you can apply to have the sole trader registration transferred – this may give some admin/accounting benefits through reducing the number of changes.  But if you think it may be a while before the company will need to register, you may prefer to deregister the sole trader business and leave registering the company until the appropriate time.