Incorporation and VAT


In this weeks Ask LCM, we will be looking at Incorporation and VAT registration.  The purpose of these Ask LCM posts is to give you a quick and simple answer to a recent question that we have been asked.

Each week we will answer one question in a post that you can read in less than 5 minutes.

We aim to provide a space where people can find answers to many of the questions that hold them back, where people can learn and progress.

This week we will answer the question “Can I keep my VAT number when I incorporate?”

What do we mean by incorporate?

By incorporate we mean the setting up (incorporation) of a UK limited company.

This may have several benefits depending on the circumstances.  However, incorporation may not be right for everyone, so it is important to get good advice on this.

Can I keep my VAT number when I incorporate?

In short, yes you can.

If you are registered as a sole trader currently and you are already VAT registered, you can opt to transfer this VAT number across to the company.

The same principle applies if you acquire a limited company.  The previous owner does not need to de-register from VAT.  You can keep the same VAT number.

There are a couple of reasons why you may wish to keep the same VAT number.  Mainly, these are for ease, to save time and simply for continuity.

Can I get a new VAT number when I incorporate?

Yes.  You can also register the new company for VAT & get a new VAT number.Sometimes, this may be the better/more convenient option for you and so should also be considered.

Getting a new VAT number is a fresh start.  So you lose the VAT history of the previous sole trade business.

This may be helpful if you have a history of filing VAT late or paying your VAT late.

By registering under a new VAT number, the slate will be wiped clean.

If you have any questions about incorporation or VAT registration, please get in touch today.  One of our team will be happy to help!