Trade Account Names & VAT

[Gimp]

Just wondering if anyone could help me out on this one, for a trade account at various suppliers is it necessary to give a business name (though you may not actually be running a business) in order to set up the account, so as they see you as in the trade or can you just use your own name by itself? I'm thinking of this in relation to VAT as if you use a business name then they might see you as being in business rather than as a self builder so might encounter difficulty reclaiming VAT of the invoices. Would I be right in thinking this.

[Barney12]

It is perfectly viable to trade/run a business as your own name.

[Steptoe]

In much the same way as many large companies actually use trading names,

Not a precise example, but you could have for instance,

"Kingfisher group T/A B&Q"

[Barney12]

and just to prove the point......A very familiar example of trading as your own name........

 

John Lewis opened a drapery shop at 132 Oxford Street, London in 1864

[Gimp]

17 hours ago, Barney12 said:

and just to prove the point......A very familiar example of trading as your own name........

 

John Lewis opened a drapery shop at 132 Oxford Street, London in 1864

Ah, good point, I think I'll do that with suppliers it keeps it simple and flexible plus should help to avoid misunderstanding/argument with the Inland Revenue over if I'm self build or company I would have thought. Many thanks

[jamiehamy]

Our 'business name' is the name of the house  

[Temp]

 

On ‎10‎/‎24‎/‎2016 at 12:37, Gimp said:

I'm thinking of this in relation to VAT as if you use a business name then they might see you as being in business rather than as a self builder so might encounter difficulty reclaiming VAT of the invoices. Would I be right in thinking this.

 

In order to reclaim VAT on materials using the Self Build VAT Reclaim scheme VAT invoices must be in your name.  A business cannot use the Self Build VAT Reclaim scheme.

 

If you happen to have a business that has the same name as you then that might work out. However I would avoid paying for materials using a bank account linked to the business. If HMRC were to check up they might argue the business purchased the materials and then gave them to you. That would scupper the VAT reclaim and could give rise to other taxes (Dividend tax?). 

 

 

[Gimp]

3 hours ago, Temp said:

 

 

In order to reclaim VAT on materials using the Self Build VAT Reclaim scheme VAT invoices must be in your name.  A business cannot use the Self Build VAT Reclaim scheme.

 

If you happen to have a business that has the same name as you then that might work out. However I would avoid paying for materials using a bank account linked to the business. If HMRC were to check up they might argue the business purchased the materials and then gave them to you. That would scupper the VAT reclaim and could give rise to other taxes (Dividend tax?). 

 

 

Good advice Temp, I wondered if this may be the case, I'll make sure I just stick to my own name on all supplier invoices. Thanks also.