Transfer of a going concern (VAT)

If a business is transferred from one type of legal entity to another the turnover of the old legal entity must be taken into account when determining whether VAT registration is required.

You cannot just look at the turnover going forward and take a ‘VAT’ break until its own taxable sales exceed the VAT registration threshold (currently £83,000)!

However if you were in flat rate VAT scheme and want to stay in flat rate VAT (and are eligible) even if you keep the same registration number this is counted as a new registration so you get the 1% discount for the first 12 months!