Client runs a sole trader cleaning business turnover for last 12 months around 75,000 so approaching the VAT threshold.
The numbers also indicate trading as a limited company going forward would make sense.
If they set up a limited company for the cleaning business would the clock start ticking again from zero from the date of registration for the purposes of the VAT threshold?
Most of their clients are businesses who are VAT registered so once they do eventually register for VAT this should not cause any pricing issues. However they do also have some customers who are not VAT registered and the client has asked if the limited company was VAT registered and servicing most of his customers could he still service his non VAT registered clients via his sole trader business (which would not be VAT registered)? Or is the sort of thing that HMRC frown at?