Welcome to the Community, @tom253. I'm here to help clarify any confusion you have about transitioning from an LTD company to a sole trader in QuickBooks.
When you delete your QuickBooks Online account, all associated financial records and data are permanently erased and can't be recovered. If you're considering this option, you might also want to explore modifying your company's tax type to a sole trader status. If you decide to proceed with this change, here are the steps you can follow:
- Open your QuickBooks company file.
- Go to the Gear icon, then Accounts and Settings.
- Head to the Company tab and select Company type.
- On the Tax form dropdown, select Sole trader.
- Once done, click Save and Done.
After this, you must register as a sole trader through the HMRC website by submitting your personal and business details to comply with tax requirements. For more information, refer to this article: Sole trader vs limited company - what's right for you.
As for VAT registration, both limited companies and sole traders must register if required. You can complete this process by visiting this government website: https://www.gov.uk/register-for-vat. Additionally, it's advisable to consult with your accountant for personalized guidance and to ensure compliance with registration steps.
Should you need help updating your business information in QuickBooks, this detailed guide can assist you: Change your business name, contact info, or Companies House Registration Number (CRN) in QuickBooks.
If you have further questions or need additional details about changing your company type, please don’t hesitate to reach out on this forum, @tom253. We're here to provide the support you need.