Any effects of Opting to Tax on his non-VAT registered business? | AccountingWEB

Any effects of Opting to Tax on his non-VAT registered business?

My client has recently acquired a property which he is considering to Opt to Tax for VAT purposes.

He also has the following financial interests:-

1. Sole trader (selling vending machines) - turnover £1000 p/a

2. Partnership (with wife) (retail consultancy) - turnover £10000 p/a

3. Rental of canal boat (self) - turnover £NIL, but expected to be £50000 p/a (income starting imminently)

4. Rental income (with wife) (small industrial unit) - turnover £15000 p/a (plus VAT because of a previous Opt to Tax election made about 5 years ago)

5. Rental income (self) (small industrial unit) - turnover £31000 p/a

His total sole earned income turnover (i.e. non rental income) is £1000 and clearly below the VAT registration threshold, as is the joint earned income turnover (i.e. joint with his wife) of £10000.

A few of questions please:-

1. Is the canal boat income a trade or a rental business and will if figure in any VAT registration threshold calculations?

2. Ignoring the Opt to Tax position, is it right that the there has hithereto been no requirement to register for VAT?

3. If he Opts to Tax the recently acquired property, will this mean he has to register/charge VAT on his other interests (trading and/or rental), or is the new property ring-fenced without affecting his other interests?

Many thanks for any assistance.




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Recently acquired property,

puzzel |
puzzel's picture


spidersong |

Constantly Confused

Constantly Confused |
Constantly Confused's picture


neileg |

But he isn't registered

Constantly Confused |
Constantly Confused's picture

VAT Partnership?

neileg |

Joint ownership

spidersong |


neileg |