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.
- New Employers Helpline 162 4
- Limited company director - other earnings in the tax year 133 3
- Software recommendations 227 1
- Share transfer question 345 17
- Land Rover Discovery 3.0 SDV6 255 Comm Auto 2 seat 280 7
- The stupidity continues 326 10
- qualifying for 1/9th tax credit on foreign dividend 143 2
- HMRC & daft penalty 2,384 19
- Overlap relief 745 19
- What is IRIS World like? 343 8
- Pension contributions 358 10
- Offsetting CT losses against another company 132 4
- Do you have to declare business expenditure on a personal credit card on your P11D? 474 11
- Do you use sign up lists on your website 160 1
- CIMA at the age of 35?? 460 9
- Setting up PAYE scheme without UTR 256 8
- Free project management software with Gantt charts, preferably on-line 201 1
- If you've had any issues posting: Please read this 557 10
- Budget 2015 - take two 223 3
- CIS Contractor has not issued tax deduction certificate to client 211 4
- Has anyone been affected by the RBS payment breakdown? 433
- Straight line write off of Purchase Goodwill ??? 428
- WIP Software 292
- FRS 102 compliant illustrative accounts for an insurance company 286
- No payroll scheme in place 224
- CGT, PPR and transfer of equity to spouse. 224
- Do subcontractors on work for residential (student accomodation) construction 204
- Is there anything wrong with this? 195
- Small Part Disposal of Property 176
- Uncommercial property business 173