A sole trader photographer who has commercial clients (VAT registered) is voluntarily registered for VAT.
Due to coronavirus he wants to make and sell furniture to private individuals (not VAT registered).
Can he run the furniture business as though it is not VAT registered and not charge the 20% output tax and not claim input tax whilst keeping the phorography business as VAT registered?
Or should he set one business up as a limited company?
Or should he deregister the photography business?
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As a sole trader he has one VAT registration for all businesses. Running the furniture business as a limited company would be more appropriate, as the two business activities are different and separate, so no artificial separation. Otherwise, he will have to charge VAT on the furniture business.
