Business splitting is a perennial issue. In this issue, readers might be interested in a recent Tribunal case where HMRC simply back-dated an assessment on the basis that there was a single business.
Online forums frequently raise this question. It is correctly pointed out that HMRC can only issue a Notice of Direction under VATA 1994, Sch 1 (2) from a current date. However, they can also raise an assessment, arguing that there was only ever one business. I have seen this practice on a number of occasions, and it can, of course, be fatal to a business’ survival.