Sole Trader to Ltd then VAT?

samkma

Currently trading online as a sole trader for last 7 years, I am planning of opening a retail shop, I wish to go the Ltd Company route for that.
So how do I move all my stock to the Ltd co? also if I want to register for VAT (currently well below the threshhold) will I be able to claim VAT paid when I was a sole trader, I know the name should be the same, will being saintjohns now and saintjohns ltd later be a problem for claiming VAT for the last few years?

Will my new venture be considered as a startup for a startup loan?

Pennywise

You'd need to register for VAT as a sole trader to reclaim VAT on goods & services bought before registration. If you convert to Ltd first and then register for VAT, you won't be able to claim any VAT on goods/services bought as a sole trader.

martindow

Have you spoken to an accountant about the pros and cons of registering for VAT? Your retail shop will have to charge VAT on sales if you register which will increase your prices or eat into your profit margin. You shouldn't be swayed by reclaiming VAT at the beginning unless it works for you long term.