Client is a Beauty Therapist whose business has grown dramatically from £40k turnover to £140k turnover moving to a state of the art salon in the centre of a major city. Client did not want to VAT register. I advised that this wasn't a choice in the period where VAT registration became required during this growth and explained disaggregation. Business sells lashes tanning and Beauty. Client has come back saying they dont want to pay VAT and want to setup at home as separate business etc etc etc so they can spit their income in both and avoid VAT registration. Last time I was in this position I explained that I would need to resign unless client VAT registered and she took the advice and did so. She wont now. Spends too much and doesnt want lifestyle affected by VAT. Same old story.
I cannot see any legal way of avoiding the disaggregation rules. This business is obviously run by my client from an obvious location and advertised extensively with glossy website. I am expecting client might try setting up business in partners name to try to blur the connection because this is what her Mum and sister have both done (not my clients) and they are both getting away with it.
Is there any valid way of splitting this business that I may have missed?