Ltd Company client has 2 directors (A & B) who decided to split Company which had 2 Retail websites; each director now controls website each. Director B taken over site with lower turnover & regsitered previous Trading Name as Ltd Company. He insists he is not liable for VAT as the turnover is expected to be below the threshold. Director A maintains website with higher turnover & has continued to submit VAT returns since 'Company split'. Prior to split, original Ltd Company had bank facility which had 2 current accounts, 1 in name of each website (i.e.ABC Ltd t/a 123Sales & ABC ltd t/a xyz sales). Director B is still operating his business using original bank account, therefore part of original Ltd Co banking records ; my concern is that HMRC will insist the 2 Companies are still one trading entity as same bank account used & many supplier purchases for Director B Company are still bought under orginal Ltd Co name. Both websites sell the same products so I feel HMRC would still insist 'New business' should be VAT registered even if considered separate entity from original Ltd Co, as it was part of a VAT registered business. Welcome anyone elses opinions as I worry that HMRC may insist sales/income on Director B New business should be included in Director A VAT calculations. I am only dealing with the daily accounts for the Original business with Director A.... dont think Director B is doing anything regarding his accounting records yet!