I have a client with a limited compnay providing services to clients with second homes. One part of the business involves him subcontracting laundry and cleaning services for which he invoices the clients with an added percentage for a finders/organising fee. The other part involves him carrying out small diy jobs or arranging for builders etc to do jobs and checking on the property while the owners are not there. The laundry and cleaning costs are coming in at 2.5/3 k a month and pushing his turnover close to the VAT threshold. He wants to split the 2 parts of the business into 2 separate companies as if he charges VAT he will either have to absorb it or increase his prices and lose customers. Not all clients use both parts of the business and there are some that just use the laundry business. I am conscious of the VAT avoidance issue with disaggregation and feel that I should advise my client against this. He has suggested making his wife or father in law the director of the cleaning business and using the father in law's address for the company but wants to keep the same name for both so as not to confuse existing or future clients - he doesn't want to give those using both services 2 separate invoices with 2 separate company names. I think his wife being director and using a similar name for it would be too close for HMRC's liking. I feel this is a tricky one so any advice would be most welcome as he insists he has to separate them and wants me to find a viable solution. I am wary of any repurcussions on me if I do this.