VAT and invoices

[nigel2008]

Hi,

I am about to form a limited company. I need to pay someone now for some work they are doing for that company and they will charge VAT so as part of the process in forming the company I will need to make it VAT registered.

Couple of questions!

1. Although the company is not yet registered as a limited company can I invoice the supplier now in the new company name, and;
2. Can I retrospectively claim back the VAT I will pay in 1. above once the company is VAT registered?

Thanks,

N

 

[Scalloway]

1. No you can't use the limited company name until it is registered at Companies House.

2. You can set the date of VAT registration as being the same as the date the company is registered at Companies House.

 

[Gecko001]

You can use a trading name and register for VAT as a sole trader now. When you form the Ltd company you will have to register that company for VAT as well. Unless the invoice is for a vast amount of money it seems hardly worthwhile doing it this way though.

 

[Mr D]

Hi,

I am about to form a limited company. I need to pay someone now for some work they are doing for that company and they will charge VAT so as part of the process in forming the company I will need to make it VAT registered.

Couple of questions!

1. Although the company is not yet registered as a limited company can I invoice the supplier now in the new company name, and;
2. Can I retrospectively claim back the VAT I will pay in 1. above once the company is VAT registered?

Thanks,

N

Why will you need to make your business VAT registered?
You will get charged VAT by any VAT registered company whether you are VAT registered or not.

 

[Taylor Heath]

Hi,

I am about to form a limited company. I need to pay someone now for some work they are doing for that company and they will charge VAT so as part of the process in forming the company I will need to make it VAT registered.

Couple of questions!

1. Although the company is not yet registered as a limited company can I invoice the supplier now in the new company name, and;
2. Can I retrospectively claim back the VAT I will pay in 1. above once the company is VAT registered?

Thanks,

N

Hi, unless the company is incorporated or the incorporation process has begun you can't invoice from the company. In regards to VAT it may not be worth registering as the benefit completely depends on the business size and operations. Although you would be able to claim back VAT you would also have to charge it on your sales, this would mean that your prices may have to increase (which could affect sales) or you would have to factor VAT into your current prices, therefore effecting your profits. You can back date your VAT registration however there are time limits.