My husband is a sole trader owner driver of a tipper lorry. Due to personal and debts accrued by ignorance he started an iva in July. One of the creditors was VAT. He deregistered through utter fear at the time, but is now seeing how much money he would save being VAT registered because of the ammount of diesel he buys per month. Can he register again? If the first return equates to a repayment would it be issued?
This is our first post - so thankyou in adance for being there!
From my basic understanding of VAT you can register at any time, has he thought of forming a Ltd company instead of being a sole trader? I think that as long as you have the paperwork you can go back 3 months for reclaims. You really need to take 5 minutes and speak to an accountant they will point you in the right direction..
I am sure that he can re-register for VAT purposes - and he should if his earnings are projected to be in excess of the registration limit. Will the additional 20% he will need to charge his customers have any impact on his sources of work - this will not impact if his customers are all VAT registered as well.
