Same VAT registration for sole trader/partnership?

Same VAT registration for sole trader/partnership?

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Client was a VAT registered sole trader and had two completely different businesses both that were included on the same VAT return.  His previous accountant then set up one of these businesses as a partnership with the client and his wife and left the other business a sole trader.

The question is can he continue to use this same VAT registration for both his sole trader income and the new partnership (he's not trying to avoid paying VAT) or is it compulsory to register the new partnership for VAT in it's own right?  Client would like to continue with the old registration for both businesses.

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chips_at_mattersey
By Les Howard
15th Oct 2014 22:19

VAT registration

The partnership is a different legal entity, and therefore has to have its own registration for VAT. Under TOGC rules, the partnership will be registered immediately on change from Sole Trader.

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By The VAT Doctor
15th Oct 2014 22:54

Disaggregation FAIL?

Was the intention to split the business and have one of them unregistered?

Obviously this is possible, in certain circumstances and more obviously if there is a separate business that's not closely related per the legislation.

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