MrAnchovy/anyone else who knows about tax/VAT etc - please advise on changing status (sorry long and dull)

[DowagersHump]

I'm self employed and have recently taken on a new contract which requires me to be a limited company. I've also realised that the new contract may take me over my VAT limit for the year so I've registered the ltd company for VAT too.

My questions are to do with my other clients:
Firstly, do I need to ask them all to do new confidentiality agreements if I'm now a ltd co and when I signed the earlier agreements, I wasn't? I have another contract going which runs until the end of September so would I need to start a new contract with them too? I can't imagine there's going to be more than a couple of days of work over the course of the month but assume that effectively my sole trader organisation no longer exists?

And how do I deal with the VAT issue? I presume I will have to charge all my existing clients VAT now. Is that likely to be a problem (as it will effectively make me more expensive)? Should I alert them in advance that I will be charging VAT from now on or just let them know as and when they ask me to do some work for them?

How do you plan to deal with the tax and accounting responsibilities of the limited company? I would suggest that you need to get an accountant and take specific advice from them on these matters too. They will also probably save you money by recommending a VAT flat rate scheme and in other ways.

Yeah I should get an accountant - my first VAT return is due at the end of this month it seems (I only got my certificate today) which is a total headache because I've got to invoice a client for a couple of hours worked this month and it's going to be really difficult to add VAT to the invoices because they use an automated system. I'm started this new job next week so really don't have an awful lot of time to be chatting to accountants either :(

And thank you :)

I wouldn't have thought that the hours worked for the existing client are anything to do with the new company and its VAT registration although I would need to talk through the detail to be sure.

I would strongly back up Anchovy's point to get an accountant with whom you can sit down face to face and talk through the real numbers and dates so that only the correct transactions go through the VAT company and that you are on the best scheme for you.

Thanks both. I've asked my local friend who has his own company for recommendations :)

I was fine with sole trader but this is loads more complicated!

The limited company and you as a sole trader are two different entities. I spent some time a few years ago with a limited company registered for VAT and sole trader me not registered. But limited company is a whole different ball game from sole trader and I found I definitely needed an accountant then.