From Sole Trader To LTD Company!?
Hello,
I have been trading on Amazon for around 6 years, my wife joined me around a year ago and from there we have grown a lot.
So much we will now need to become VAT registered meaning becoming a LTD company not a sole trader any more. Now the amazon account is in my name only because when i started this it was just me here.
Will this cause a problem because all the doc’s will be in my name and HERS?! Address will be the same and everything else, just new bank account and obviously submitting the LTD company DOCS.
Ive emailed the verification team but thought id put it on here in the meantime.
I am slightly scared due to all the horror stories that i hear!
TIA, George
From Sole Trader To LTD Company!?
Hello,
I have been trading on Amazon for around 6 years, my wife joined me around a year ago and from there we have grown a lot.
So much we will now need to become VAT registered meaning becoming a LTD company not a sole trader any more. Now the amazon account is in my name only because when i started this it was just me here.
Will this cause a problem because all the doc’s will be in my name and HERS?! Address will be the same and everything else, just new bank account and obviously submitting the LTD company DOCS.
Ive emailed the verification team but thought id put it on here in the meantime.
I am slightly scared due to all the horror stories that i hear!
TIA, George
0 replies
Seller_L3E8iknKXqZNV
You dont need to become a Ltd to get vat registered
Seller_asq78HZylK80l
I moved from sole trader to limited company and it was pretty painless. It took around 6 weeks in total to complete. It’s a case of making sure you have all the relevant paperwork Amazon will request, ie documentation from Companies House, HMRC, the bank info and the relevant proofs.
As previously stated you can be a sole trader and be VAT registered.
It’s worth speaking to an accountant to see what they would recommend, as being a Limited Company or a sole trader, both have have their pros and cons but they’ll be able to advise which is best for you financially
Seller_prNRYzgZJre6A
We moved from a sole trader to a limited company a few years ago and it took Amazon around 2 to 3 months to update our account. Like you we moved from a single named company (Sole Trader) to a two persons Limited Company, so it took a little longer. Recommend going limited if your company is still growing, however seek your accountants guidance first, as everyone is different. Just be patient with Amazon as they can seem to take ages, but they will get there.
Seller_YSVJTvJFHSin4
You don’t have to be a limited company to be VAT registered, as @GMT_Classics1 says, though we did some years ago go down the route of becoming a LTD company. Be prepared for all those horror stories to come true. In our case verification took over 2 months and the usual hopeless support - the verification team sending us messages saying we had to do X, we did X, two days later, another request to do X. When they asked us to do Y or Z, this was not even necessary. We were suspended for the entire duration and earned no income during it (apart from our Kindle books, which remained unaffected by any seller account suspension).
Seller_e1tS85D4hMxyQ
I think have decided to just become VAT registered but not LTD company, not many bonuses to becoming LTD also saves the ache of getting verified again.
Is changing to VAT registered on Amazon just as easy as typing in my VAT numbers once we get it?
George
Seller_asq78HZylK80l
When I went VAT registered it was just a case of entering your VAT number. Amazon then request a copy of the VAT registration certificate that HMRC send you. At no point was there any disruption to my seller account. Youve just got to make sure you send everything in a timely manner.
Seller_WxKirdM9gckrp
After speaking to the verification team, I was told that most peoples horror stories are because they do not have their documents ready and do not provide in a timely manner, if you look at what is needed and get it all prepared, you can send amazon the docs as and when they request it to prevent any delays. I also wasn’t sure whether to be a sole trader or ltd but I was advised ltd is a lot more efficient in tax terms, especially if your business is growing.
Seller_e1tS85D4hMxyQ
The closer it gets the more questions i have aroung this VAT rubbish!
So when i do my books at the moment i download CSV files from paypal, Amazon and website. Download bank statements and send to accountant. Add any cash invoices manually.
Now how do i go about working out how much VAT i have paid on selling fees etc? Will there be a separate report to generate to tell me this? I am hoping so but i am also guessing not…
Seller_7K8f0kFMQQhzF
No this is not possible as I had the same problem , you will have to close the sole trader account and open a new amazon selling account with the new ltd company details ,Total Nightmare… Amazon will not let you change the existing sellers account to a ltd company , hope this helps
Seller_e1tS85D4hMxyQ
Sorry to pull this thread back up, BUT we have now got the ball rolling for VAT registry. We are having to back date as we went over and we had not noticed so will be VAT registered from the 6th of April. So that means my self and my wife will be on the business and VAT registered from then, now the account is in my name not my wifes. But as we are now married and both work on the business together i put her name on the business to help taxes. So now the paper work will show mine and her name, will this effect it when i put the paper work into the robots that are Amazon?
I wont put the VAT number in until i have all paper work ready, what paper work will they ask for when i become VAT registered do you know? Just so i have it ready.
George
