Hi
I've been asked to join an SME which has been running as a sole trader for c.1-2 years with a view to implementing a number of new financial systems and turning it into a more professional outfit. As I understand it, the business is currently VAT registered with c.£300k t/o p.a. The current proprietor has suggested winding down the sole trade (paying up creditors, completing final self assessment tax return, etc) and incorporating a new limited company to start a fresh (which I will acquire a share in).
My question is this - incorporating a sole trade obviously requires VAT registration to be either transferred / the new company to register. However, if the proprietor winds down the sole trade and starts a new business with me (new registered office, new capital structure, new agreed contracts with suppliers, etc) then what are the VAT implications? Can I simply start a new business and not register until the threshold is breached on the LTM lookback or 3M lookforward tests?
Any info would be much appreciated.
Best
Kris
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