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Where Taxpayers and Advisers Meet

Reached VAT treshold. Which do I register first: for VAT or LTD company

the5ame
Posts: 5
Joined: Mon Jul 04, 2016 4:48 pm

Reached VAT treshold. Which do I register first: for VAT or LTD company

Postby the5ame » Sun Apr 30, 2017 10:36 am

Hello,
as title says. Reached VAT treshold and was self employed. I know I will have to go LTD to pay out some money in dividends. Not sure which I should register first a Limited Comopany or register for VAT? Or maybe it can be done in one go? Do you think it would be wise pay someone to do everything or it is simple procedure? I am also love to know new things and how they work. Cheers

robbob
Posts: 2827
Joined: Wed Aug 06, 2008 4:01 pm

Re: Reached VAT treshold. Which do I register first: for VAT or LTD company

Postby robbob » Mon May 01, 2017 3:42 pm

Presuming you are obliged to be registered the registration should go ahead under normal principles and then "transferred" to the limited company when that starts trading - i am presuming this will be the same trade and the the company starts trading after your effective date of registration.

to minimise hassle in year 1 why not get a decent accountant to include the vat monitoring as apart of an inclusive package there are some quirks at present that makes it tricky to know what route is best and to ensure nothing is missed with regard to first couple of vat returns.


Note as an aside if you had swapped to limited company before reaching registration threshold you could have reset rolling 12 month turnover test and potentially delayed registration.

the5ame
Posts: 5
Joined: Mon Jul 04, 2016 4:48 pm

Re: Reached VAT treshold. Which do I register first: for VAT or LTD company

Postby the5ame » Tue May 02, 2017 8:50 am

So there is no way to "reset" treshold once I have reached it if registering LTD?
Not sure if i need accountant to do my books? Cos I am using KASHFLOW and all of my payments are going through PAYPAL which imports automatically. Then I can generate all reports including VAT return etc?
How do I find a local not expensive accountant? :)

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: Reached VAT treshold. Which do I register first: for VAT or LTD company

Postby section 44 » Tue May 02, 2017 11:00 am

So there is no way to "reset" treshold once I have reached it if registering LTD?
Practically, likely not.

robbob
Posts: 2827
Joined: Wed Aug 06, 2008 4:01 pm

Re: Reached VAT treshold. Which do I register first: for VAT or LTD company

Postby robbob » Tue May 02, 2017 11:21 am

The problem with vat is the ridiculous complexity from a compliance point of view at present - this is especially the case with any e-commerce type business.

One note with regard to registration is the potential that the value of reverse charge expenses from the EC (eg Ebay fees paid out / other EC based providers of services) has to be factored in when calculating your turnover for registration purposes.

https://www.gov.uk/vat-registration/calculate-turnover

services you received from businesses in other countries that you had to ‘reverse charge'


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