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Transfer of a Going Concern

Q: We are trading as a partnership and overreach the VAT registration border in March 2018, requiring us to be VAT registered with effect from 1 May. However, we are contemplating assimilating from the beginning of the tax year (6 April 2018) and running the business from that date via the company.  As there is no need to be VAT registered until 1 May 18, would this give us a new purity for calculating their turnover for registration purposes?


A. A change of trading entity is considered to be a transfer of a going concern and as such Section 49 VATA 1994 offers that the turnover of the transferor should be treated as that of the transferee in deciding whether the transferee is liable to be registered.  But, this only goes to where the transferor is a taxable person.

A taxable person is someone who is either already VAT registered or responsible to be registered. So the question here is whether someone who has overreached the limit but is still in or within the 30-day notification period is a taxable person.