Another business and VAT

Another business and VAT

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I have a brother and sister partnership (newsagents) who have recently incorprated and are VAT registered. They have been approached by another individual to open another newsagents in partnership, but independent of their original business. What is the best way to structure this new partnership? Should they form a separate partnership for this new business as incorporated/non incorporated? What would be the VAT issues? The profit share would be 50%(brother & sister) and 50% (individual).
RB

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By theaardvark
25th Nov 2004 17:07

Keep separate.
If the 2 businesses are to be treated separately (and I think it is preferable) then your clients must ensure that all accounting, bookkeeping, cash handling and employment is kept separate to avoid any possibility that HM C&E could allege that there is in fact a single business.

Regards

Paul Taylor
VATease - VAT Experts

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By User deleted
25th Nov 2004 10:46

Seperate entity..
...As another person has now joined this would now be a seperate legal entity to the original limited company. Therefore seperate VAT registration would be required. Although if below the threshold of £58k no registration would be required.

It would also be a completely seperate business from the original one and therefore require either incorporating (if that was the route they wanted) or the setting up of a new partnership.

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