Hi. My business partner and long standing friend are about to set up a company. It will be of course needed to rent a space in which we will engage in business activities. We have decided that the company form will will a Limited Liabilty Company in order to protect ourselves legally in the best way possible. How does this affect our rent in terms of tax? Will we be able to deduct VAT from the rental costs?
What are you talking about? If your company will have a profit £65,000 anually you will have to registered it for VAT. If it is less than that, you can do so but are not obliged. This has nothing to do with the kind of company you have decided to set up. And for a firm that is just beginning I am not really suggesting to immediately VAT register, unless you are very sure you will pass the threshold. This is a complication for your business!
