Jump to content

Should I register my Ltd company for VAT?


philh777

Recommended Posts

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.

 

Regards,

Phil

Link to post
4 hours ago, debbie franklin said:

Hi

 

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

Debbie

Debbie,

 

Thanks for taking the time to respond. Much appreciated.

 

Phil

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...