VAT on taxi driver takings
I have a new client who is a taxi driver with turnover of c £10k p.a. He has just acquired the lease on a pub which turns over c £3k per week. He is running the pub as a sole trader at this stage and is not VAT registered. He will obviously take steps to register in about 6 months time when pub t/o reaches the threshold. a) Does he need to take into account the taxi takings when assessing his turnover in relation to the threshold?; b) if so will he then need to account for VAT on the taxi takings?; and c) is there a way to structure this to avoid VAT on the taxi takings? e.g run the pub through a company? I am looking to justify a separate trade and feel in no way that this is an artificial splitting exercise.
(The client's wife helps out in the pub and so there is scope to give her a stake as a partner or director/shareholder).
Any input, views, titbits, advisory nuggets will be welcomed with open arms!
Thanks in advance.








If the pub was trading previously