Commentary

V7.138 VAT registration—an intention to trade in the future

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.138 VAT registration—an intention to trade in the future

Part V7 Tax planning | Commentary

V7.138 VAT registration—an intention to trade in the future

It is common practice for certain types of business to incur large amounts of expenditure before they actually make a taxable supply. Examples could include a business that builds new houses, or a new business that needs to carry out major property alterations before it can start trading.

In such cases, a business can register for VAT as an intending trader – however, it is important to remember the following points:

  1.  

    •     HMRC will obviously look very closely at intending trader applications. It will need to be convinced that the business has

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