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• # 114056
• Tue 01 Nov 2016 03:50 PM

Hi,

So I have a client who has ltd company and is planning to open another business but trade as sole trader. Does he need another VAT number or can he have one for both sole trade and ltd?

I spoke to HMRC and they said he would need another number but am I wrong in thinking it's the person that is vat registered not business. So for sole trade can he just not use the same VAT No?

Thanks in advance

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• # 114057
• Tue 01 Nov 2016 04:05 PM

The Ltd Co is the 'person' not your client.

Presumably your client is the Company Director at the moment but this could change if he resigns and someone else is appointed as a director.

So Ltd Co and Sole Trader are two different entities.

Trust this answers your question.

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 114058
• Tue 01 Nov 2016 04:17 PM

MM Bookkeeping said:

“

The Ltd Co is the 'person' not your client.

Presumably your client is the Company Director at the moment but this could change if he resigns and someone else is appointed as a director.

So Ltd Co and Sole Trader are two different entities.

Trust this answers your question.

”

 That's perfect. Thank you

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• # 114060
• Tue 01 Nov 2016 07:30 PM

Ok. So can I double check - if there is two entities you need VAT number for each. But what if someone has two sole trader businesses? Both trading under different name. Would they have to get two VAT numbers for each business?

Thanks

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• # 114061
• Tue 01 Nov 2016 09:22 PM

Hi Yola

When a Ltd Company is VAT registered - it is the Company that has the VAT number (not a person)

When a sole trader business has a VAT number - it is the person that is trading as a sole trader that is VAT registered. So if this person has more than one sole trader business, then he would have to use the same VAT number, as it is him/her that is registered for VAT. 

If the same business owner has a sole trader business AND a Ltd Company, then there would be 2 differenet VAT numbers - one for the Ltd Company and one for him personally (connected with his sole trader business - and nothing to do with the Ltd Comp)

I hope that clarifies for you.

• Carol Saunders
  Lady of Ledger Book Keeping
  Telford, Shropshire

  
  

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• # 114066
• Wed 02 Nov 2016 04:04 PM

Lady of Ledger said:

“

Hi Yola

When a Ltd Company is VAT registered - it is the Company that has the VAT number (not a person)

When a sole trader business has a VAT number - it is the person that is trading as a sole trader that is VAT registered. So if this person has more than one sole trader business, then he would have to use the same VAT number, as it is him/her that is registered for VAT. 

If the same business owner has a sole trader business AND a Ltd Company, then there would be 2 differenet VAT numbers - one for the Ltd Company and one for him personally (connected with his sole trader business - and nothing to do with the Ltd Comp)

I hope that clarifies for you.

”

 Hi,

Thank you that's very clear :)

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