Readers’ forum: VAT on buying a business as a TOGC

I recently dealt with two unusual VAT situations with clients who bought businesses. I would like to confirm with readers that I advised them correctly.

My first client is a florist who has never registered for VAT because his annual sales are only £70 000. But on 1 December 2021 he purchased another small florist business as a transfer of a going concern (TOGC) from someone who was not registered for VAT either.

Her annual sales were £30 000.

I told my client that he did not need to register for VAT on 1 December 2021 because he could ignore the seller’s sales because she was not registered for VAT or liable to be registered. It is only when his own sales exceed the registration threshold of £85 000 that he must register. But a colleague said that the sale of flowers is a taxable activity and he should...