Husband and wife have a partnership running for last 3 years. Wife's health is suffering and may be wont be involved in the business and the sales have dropped due to cost of living crisis. They want to dissolve the partnership. Husband wants to carry on same trade but as sole trader, under the sole trader, the sales will be below VAT regsitration limit. Would the husband need to VAT register still or the sole trader business will be separate entity subject to VAT registration rules from scratch? Or best keep the partnership and de-register the VAT.
1st Aug 2023
VAT Parternship dissolving to sole trader
Lower sales, below VAT registration limit, is sole trader obliged to VAT registration