Becoming VAT registered mid project

[torqueofthedevil]

Sole Trader Business has been operating under VAT threshold but new LTD could take on first project that will see revenue above 85k.

Therefore should do we simply register as VAT registered from the beginning?

[MustangGT]

Sole trader and Ltd Co are two different legal entities. Will the sole trader be the only shareholder of the limited company?
Will the Ltd take over all work from the sole trader?

[sgrimshaw]

torqueofthedevil said:

Sole Trader Business has been operating under VAT threshold but new LTD could take on first project that will see revenue above 85k.

Therefore should do we simply register as VAT registered from the beginning?

If you know the Ltd company will exceed the VAT threshold anyway and there is no compelling reason "not" to register "now", then make life simple and register now ...

[MaxFromage]

It's a question your accountant really needs to answer for you, as you need to consider all variables. However it's more than likely it'll be best to register. Bear in mind registering for VAT is a real pain at the moment, so it can take a while to get the registration through, especially if land is involved.

[MattsCar]

Before registering for VAT. Please do calculations to find a "break even" figure, i.e the turnover you would have to achieve, after joining the scheme, to equal the profit that you would, if not VAT registered. Include in this calculation the cost of software to submit through MTD and also any accountancy fees. Also consider the extra time.