2 totally separate businesses [totally different trades]. One is trade based, one is retail.
T/o in each is about 40k.
Does he have to register for VAT.......
1. at all
2. for both or
3 he can voluntarily reg either/both if he wants.
Replies (5)
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VAT
As things stand, he needs to register as he has gone over the threshold - you add both turnovers together.
Once a person goes over the £70k turnover threshold in a rolling 12 month period, they are obliged to register. The person is VAT registered, not the business, so he can't have one business registered and one not, even if they are totally separate trades and both are under the threshold. If this is what he wants then, providing they are totally separate trades then he could run one business through a different vehicle (partnership or Ltd Co) and register one and not the other.
Check the main VAT guide on the HMRC site for the specific rules and to see if any other circumstances apply.
Sole Trader or Ltd Co ??
The o/p didn't specify.
If a Sole Trader, then it is the individual that is VAT registered, not the business, so t/o should be combined. On the figures given, they should already be registered.
If Ltd Co's (or 1 Ltd, 1 Sole), then they are different legal entities and each has its own threshold. Only point to note is that it can't be an artificial separation - if HMRC think business is split only to avoid VAT, then they will join them up again for VAT purposes.
Sole Trader
Ian - in his summary, the OP said "Sole trader has two totally separate businesses".
It is a pity that the heading and summary do not appear on the Reply page.
Missing details
Thanks Euan - I was convinced I'd seen sole trader some where before I replied!!