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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4414
Experience:  FCCA FCMA CGMA ACIS
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A new client is leasing a public house from his previous employer.

Customer Question

A new client is leasing a public house from his previous employer. The previous employer is VAT registered. No assets are being sold or transferred so it is unlikely to be a TOGC. Will my client have to be VAT registered from the first day of trading or can he wait until his turnover hits the VAT threshold.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to be able to help you with your question. There is no requirement to register for VAT until the turnover reaches or approaches the threshold in any one year. However, if the client is not registered in that trade he will be unable to reclaim any input tax suffered on supplies. On the other hand, he will not have to worry about the palaver of accounting for VAT. It all depends on the long term turnover position. Indeed you can find HMRC quite resistant to registration where turnover is low unless one is operating in a zero rated output environment. I do hope that I have shed some light on your client's position.
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Expert:  bigduckontax replied 2 years ago.
Thank you for your excellent support.