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.
- Jointly owned property 250 6
- Interim Accountants through Ltd co basis 112 1
- Going to miss CT filing deadline 64 2
- We contribute a percentage of employees' salaries to a pension scheme set up by them - do we need to get involved in auto-enrolment? 353 4
- Annual director payments for a small limited company 253 6
- Flat Rate Job Expenses 97 1
- Categories on the VAT Flat Rate Scheme 269 4
- Relevant life plan 236 6
- Flat Rate VAT - reclaiming VAT on Capital Purchase (bought on lease hire) 151 4
- The return 958 28
- Directors loan - no longer a director 128 1
- Why .... 564 6
- HMRC Unpaid Debt Collector 527 10
- Any advice on large 55 inch + computer monitor 159 1
- Pylon compensation - what am I missing? 390 6
- NI Contributions in order to claim state pension 469 10
- Limited Company expenses 297 7
- Formating cells in Excel 279 6
- UK taxation of income from property in Cyprus 196 4
- Advice needed for Annual Accounting Period - companies house 305 8
- Possible Partnership? 578
- Tax and accounting treatment on long lease granted from freehold 494
- New Fangled Penalties 386
- Clubs and Taxable Income 312
- Purchase of property freehold - capitalisation of costs 286
- Closed PAYE schemes and auto enrolment 235
- Loans to other companies 234
- Lenovo – Superfish & Komodia – is your PC vulnerable 200
- Outsource Data Entry 192
- Moving away from CCH software 179