I operate a small company and my wife operates another. We each prepare the books and records for our own business and we are careful about doing things in the right way.
My company is VAT registered and rents premises from a landlord who charges me rent in the normal way. £1000+ VAT per month
My wife's business is VAT exempt.
It is my intention to let her use some of my premises for her business and to charge her a rent of £200 + VAT for the space.
Can anyone help with this?
Are there any rules about this situation that I should be aware of?
What about common costs like rates & power etc.
Thanks for you help in advance because if I get this wrong I'll never hear the end of it!