Hi if you're reading this, thanks for taking the time out.
Can 2 hairdressers go into business wit the following arrangement, or will all combined income need to be assessed for VAT purposes? Not quite sure the best setup to stay under the VAT threshold.
Hairdresser 1 and 2 combine partnership for a salon which all costs go through, and all income from renting out chairs - will likely net off to a loss or break even, and be under the VAT threshold.
Hairdresser 1 self assesses for 50% of above accounts, plus their variable and directly earnt income from cutting hair in the said salon.
Hairdresser 2 as per HD1 above.
This way, neither the partnership arrangement or the individuals will exceed the VAT threshold.
If they combine and form say a Ltd, all income will go through the limited co, and will well exceed the VAT threshold meaning their margin would be cut
They want to stay separate too as they both have very different work arrangements (part time vs full time, pluss different service offerings), so it is not purely about the avoidance of going VAT registered