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?
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.