VAT Registration ?

VAT Registration ?

Didn't find your answer?

Do i have to register for VAT if i run two seperate businesses both under the registration limit, however the combined turnover is in escess of the registration limit?
any help gratefully received.
I L

Replies (3)

Please login or register to join the discussion.

avatar
By AnonymousUser
10th Jan 2005 09:52

VAT reg
I assume you are a sole trader?
If so, I believe that it is you who are the taxable person, and would hold a VAT registration number, and not the trading name of the business.

Therefore if you are over the registration limit, then you need to register.

You must register for VAT if:

* at the end of any month the total value of the taxable supplies you have made in the past twelve months or less is more than the current threshold - £58,000 and
* at any time you have reasonable grounds to expect that the value of your taxable supplies will be more than the current registration threshold in the next thirty days alone.

To register for VAT you must complete Form VAT 1, which you must send to Customs and Excise within 30 days of any of the above.

Thanks (0)
avatar
By User deleted
10th Jan 2005 10:08

VAT registration
I L,

VAT operates in entities.

You on your own is one entity and as soon as you exceed the threshold via one or a number of individual businesses you must register.

However, you and another party is another entity and as such has another £58k threshold. Therefore if there are any other individuals involved such as your partner/wife/husband then the business could be set up as a partnership and as such avoid VAT. Obviously the other party has to play an active role in the business.

Another option I believe would be to incorporate the businesses. Each company would then have individual thresholds.

Hope this helps. Any problems [email protected].

Thanks (0)
avatar
By k.bonney2
10th Jan 2005 13:01

Take care
Even with different legal ownership of the two businesses there could still be problems.

Refer to para 14 of Customs Notice 700/1/02 Should I be registered for VAT.

If there is the risk that the separation could be judged to be artificial the best approach is probably to grasp the nettle, write to Customs and invite them to make a direction from a current date.

Thanks (0)