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Should I register my Ltd company for VAT?


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Hi all,


My first question on the forum, so apologies if this has been answered numerous times before. I did a quick search of the forum for the word VAT, but it suspiciously came up as no hits, making me think I did the search wrong. Anyhow ...


I have just registered a limited company and intend to purchase my first BTL property with cash within the company (I am based in Northern Ireland and limited company mortgages are not available here yet). I want to know whether I should register the new company for VAT. My understanding is that my tenants will be exempt from VAT as they are renting a residential tenants i.e. if the rent is £500 per month, I do not need to charge £600 per month to cover VAT. However, obviously I would like to claim back VAT on any purchases I make to refurbish the property i.e. a new washing machine or management fees.


I have asked my accountant whether I should register for VAT. He says that I shouldn't; I believe his reasoning is that I can't charge VAT on the rent so I can't gain by reclaiming VAT on the purchases/management fees etc. Is he correct?


I am assuming this will be a straight forward yes or no answer, either all directors on here register for VAT or they don't. However, being new to this, I have no idea what the correct answer is.


Any help with this would be really appreciated.




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4 hours ago, debbie franklin said:



As you are making exempt supplies then you cannot register for VAT and unfortunately have no way of recovering VAT on expenses.




Thanks for taking the time to respond. Much appreciated.



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