I work for a ltd company incorporated in Feb2020. In the past 6 years, my director traded as sole trader, vat registered business, and paye registered employer with 10 employees.
he then incorporated the ltd ( both vat and paye registered ) with the aim to take over the old business with all employees etc, but then COVID happened and things were put on hold
All customers were notified and new suppliers credit accounts were created for the limited, however due to COVID and the furlough scheme , some old employees remained on the sole trader business while others were gradually employed by the ltd.
now, the ltd has various contracts in place and wants to subcontract some work to the sole trader and bring back their employees from furlough.
can this be done?
so, there are two vat and paye registered business, one sole trader and the other one ltd, different employees but there will be a commercial relation between them??!! I am not sure if it's ok for the ltd to have all the customers and the sole trader to work for the limited, even if both are vat registered.
thanks in advance