Is it a good idea to transfer VAT registration?

[Deleted member 74972]

I've just incorporated a new Limited Company to take over the business currently done by my Sole Proprietorship. The current business is VAT registered and I want the one to be also.

Is there any reason why I should not just transfer the VAT registration across?

If not, is there anything I need to be careful of in the way of timing etc?

Thanks in advance

Gareth

 

[fathippy]

Normally the advice against taking over a VAT reg is that you take on any problems of the registration from previous owner, but since it is your own registration this should not apply.

I may be contradicted here, but I cannot see any "value" in older VAT numbers in the same way that older company registrations offer a certain status. I definitely cant spot the age of a company from the VAT reg.

One possible plus in taking a new number would be to utilise the discounts afforded to new businesses in certain situations, although whether this is precluded for connected entities again you would need to read the small print. I would assume that you would also clean off any "yellow cards" that you may have had on the previous number.

I guess therefore that the gut feel is to take a new one !

 

[elaine@cheapaccounting]

Are you selling your sole trader business to the limited company?

Have you discussed this with your accountant to ensure to take advantage of the tax benefits of doing this?

 

[cheaper accountant]

Elaine is correct in pointing this out. You could save a reasonable sum in tax and you shouldn't miss this one-off opportunity.

 

[Deleted member 74972]

It's the subject of a meeting booked for Tuesday. I just wanted to get some other thoughts beforehand.

Thanks!

Gareth

 

[Rohit]

Hi Gareth

Use form VAT68 (TOGC) if using existing VAT number for new company. HMRC Link below

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=gmxrHlQONsk&formId=1005

Hope this helps