Hi,
If a client trades as a partnership where they operate below the vat threshold, the partnership ceases and one partner continues as a sole trade, does the sole trade need to consider the partnership's income when reviewing their turnover for the vat threshold review?
My understanding is that the partnership isn't a taxable person at the date of cessation)(not registered or liable to be registered) and with that in mind, owing to the change of legal entity, the historic turnover to the point of cessation doesn't need to be factored into the review.
Any feedback would be appreciated.
Thanks.
Replies (3)
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Likewise I (and Section 49 VAT Act 1994) also agree with Anonymous, whether there is reason to use anonymity in this one or not.