Just been to take a couple of shirts to be tailored - shop has just re-opened after being closed for the last 3 months and we were chatting generally about the situation.
She asked me about Bounce Back Loans.
She's a sole trader with two separate businesses, one VAT registered and one not.
She hasn't applied for a BBL as yet, but was asking whether she could get one for each business (she's had a local authority grant for each one).
Not my client, so said she should speak to her own accountant, but it has piqued my curiousity as I've not been asked that before.
My initial thought was no, but wonder if this is correct ?
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Id have thought, given both businesses fall under a sole trader, it would be one bounce back loan, covering both turnovers in total. Could be wrong.
Id have thought, given both businesses fall under a sole trader, it would be one bounce back loan, covering both turnovers in total. Could be wrong.
I'd agree, but a problem could arise if she banks with two different banks, would the bank then agree a BBL with combined turnover?
No - you can only have one bounceback loan. It is one per person or one per group and you can't have a CBILS but you can port the CBILs across to a BB loan.
I am afraid to say that she has far bigger problems than that. As a sole trader, she cannot have one business registered for VAT and one not. She is liable for VAT on both businesses, and will likely have quite a VAT bill owing if this has been going on for some time. She needs professional advice quickly to get it sorted. You should advise her to get a new accountant, since her current one clearly has no idea what they are doing.
A sole trader with two businesses, one VAT registered and one not. I hope the combined turnover is less than the VAT threshold.
Edited: Just now read Tim’s post -seems the situation is more serious than I thought.
When she speaks to her own accountant her first question should be "on what grounds did you advise me that I could be a sole trader for two separate businesses, one VAT-regd and one not" ?!
I was about to make the obvious joke about HMRC taking her to the cleaners but then realised the OP had taken a couple of shirts to be "tailored" rather than laundered.
Oh well.
In a quick chat, taylor may not have pointed out that one is a trade and the other is a partnership or Compamy
If so no VAT issues