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.
- pretty multi rainbow -coloured client spreadsheets 282 9
- Sage 50 re-key - VAT problem 195 4
- State pension 267 3
- Using profits from Ltd company as start up funds for new venture 212 6
- 27,000 Really? 963 28
- Accountancy Career 65 1
- CIC Company 647 13
- pension paid by company? 49 1
- Exactly which business miles can I claim from my employer? 1,803 22
- Can I take action against my accountant for incompetence? 3,245 66
- Deduction from Salary 628 15
- inheritance tax 367 11
- Bank account of a different company being used for transactions. 418 5
- Group Audit Thresholds 349 10
- One off meeting new client 1,677 16
- Legal title not in the company name 753 22
- Why would they want his purchase invoices?? 284 3
- Awkward insolvency practitioner 531 4
- NALS Accountants Report 350 5
- Has anyone read the implications of the Lisbon treaty? 1,235 44
- Property exchange - 8-year legal delay following fall-out 639
- Cancelled 392
- SAGE Payroll Data for Import to MS Dynamics AX 353
- Cancelled 333
- Have you staged yet for auto enrolment? 306
- Probiz 300
- Free-standing washing machine - unfurnished lettings 277
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 256
- How not to compose an email 225
- Phishing emails purporting to be from CIPFA? 221