UK VAT and Start up Costs

[JazzyBear]

Ive been operating as a self employed sole trader for a number of years, trading under the VAT threshold. Its looking likely that a contract coming our way will require us registering for VAT.

We have formed a limited company and will one day start using it as it will suit us better then being a sole trader.

I understand that once we register for VAT we can claim VAT back on start up costs going back 4 years. 4 years of some capital purchases we still own would mean quite a lump of VAT back.

MY question is. Should I register for VAT as an individual and claim that VAT back before i start trading with the limited company Or can the LTD company once it starts trading, register for VAT and bring those items (bought while I was a sole trader) on to its books and reclaim the VAT?

Thanks.

 

[JazzyBear]

Think I'll find somewhere else for my questions. See ya.

 

[Becky]

Hi @JazzyBear, sorry we don't have many VAT specialists. My own knowledge is limited, but AFAIK you can transfer VAT registration from one entity to another - so it might be a good idea to register as a sole trader to claim back the start up costs, then transfer the registration to the company.

https://www.gov.uk/vat-registration/transfer-registration

Check out part 6 of that guide too - might be useful. If you are unsure then it might be a good idea to seek professional advice and / or call HMRC.