Client with two (distinct) simulataneous self-employment trades.

Client with two (distinct) simulataneous self...

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From discussions with the client, it appears the building business will be well under the VAT threshold and will therefore not register.

The car trade will easily cross the theshold and be required to register. I would expect the majority of car transactions to fall under the margin scheme for second-hand goods (being bought/sold at auction).

In the circumstances, I would hope that HM R&C accept two distinct/separate trades being carried out (ie. the artificial separation provisions wouldn't be applicable?)

However, I'm not sure of the treatment for "common" overheads where VAT is incurred. As the client will be trading from home, examples of this would include his home/mobile tel. costs, motor fuel/repairs. How would these be treated for VAT purposes.

Thanks for any help.
TS

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By stephenkendrew
26th Sep 2006 08:24

separate trades
If both businesses are in his sole name then he would have to register both for VAT - it's the person that's registered.

To get separate treatment for VAT you would need one business to be owned by a different person (a limited company, a partnership or a different sole trader). You would also need separate business records and separate year-end accounts.

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