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.
- Taxfiler - SA100 - More efficient? 642 5
- See you all on the other side 692 6
- 12Pay 458 2
- dividends 611 2
- R&D 318 1
- Quarterly Reporting - The Logistics 1,181 17
- Auto enrolment contribution rates 440 3
- How long are you waiting for appeal reply 415 4
- Borrowing money to loan to company 373 1
- Mother as Guarantor for Son's mortgage 545 5
- Seeking a tax case 642 9
- When do we qualify for state pension? 505 4
- Companies house strike off 550 3
- Tax treatment of alterations to property 429 2
- Moving to the cloud 745 9
- Iris open space/doc exchange for SATRs 216 2
- How much to charge for payroll? 904 16
- Unincorporated charity transfer to CIO 210 4
- BTC vs Digita 1,092 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 501 4
- HMRC Joint Filing 562
- Capital Contribution towards a company car 420
- Capital Reduction & Impact on EIS Shares 373
- IRIS and FRS 102 354
- Capitalising Finance Lease 327
- USA help 317
- National Minimum Wage issue on Directors joining a Workplace Pension 297
- Dormant company accounts under FRS 102 293
- Marginal rates of tax 293
- Class 2 NI 278