Has anyone had experience of C&E interpretation of their business separation rules?
I have a client with a limited company that sells winter holidays which, for VAT purposes, falls within the Tour Operators Margin Scheme. The business is currently well below the VAT threshold.
He is now setting up a new business to sell summer holidays. It is likely that this will be set up as a new limited company with the same Directors and shareholders, trading from the same premises (their home). In all other respects the businesses will be run separately. My client wants to keep the two businesses separate in case the new venture is not a success.
Please can anyone advise from their own experience with C&E if they will view this arrangement as a single business for VAT turnover purposes?
Would it make any difference if the second business had a different type of activity, e.g. selling widgets?