The original intention of disaggregation was to prevent separation of, say, hairdressing from tanning business taking place in the same premises and sharing expenses, reception, phone, laundry etc or pub grub from drinks sales to keep below the registration limit. The dissolution of a partnership is no different from a ltd co ceasing trading and the working directors carrying on the same business individually as sole proprietors. The reason here is that one brother is feeling the effects of anno domini more than the other and intends to go abroad within the foreseeable future. The impact of MTD on this situation is to bring forward the cessation of the partnership. HMRC would have to be unusually robust to question a separation of partners with a turnover of £130k. The occasional use of the van, apart from the insurance considerations, is unlikely to be a major issue as long as there is reimbursement of costs at an arms length.
Not surprised at all. I had a partnership where the partners insisted on saying they were a ltd co and received wages (without a payroll). Eventually they came round to my point of view...
I had a photographer client who, apart from commissioned photos for publications, did a lot of speculative work, taking travel photos and other subjects that he deemed appropriate, for stock photo libraries. He might spend, say, £900 for a week's travel, subsistence and incidental expenses, take over 2000 photos from which only a fraction went to the stock libraries and, of those around 12 might be sold at £35-£45 each within the following year. Many subjects would have to be refreshed to keep them current. It was occasionally a difficult conversation separating his personal holidays from working trips. So it is not always a high profit margin business, unless something like wedding or commercial photography where there are regular high value commissions.
I don't know about VAT, but I have had a PAYE audit where HMRC checked the immigration status of some staff. HMRC officers may do cross tax checks eg if doing VAT inspection, they may look at connected issues for corporation tax purposes.
Is it a scam? I can't believe that HMRC staff have become this incompetent!
The only time an individual might have several other separate VAT registrations attached to their name is if they are in numerous partnerships. But for all activities undertaken solely by the same individual - only one sole trader VAT registration.
The valuation of the property will also include its condition, so that may be useful in arriving at a MV at the date the gift was made.
The solicitor I use asks 1) if client wants them to submit the SDLT form. If yes, they send a supplementary questionnaire to ascertain the circumstances of the property purchase, and therefore the liability, if any, to pay the tax. Never had any problems.
I presume that the partnership tax returns and personal SA both reported 50% profit share, and there are no other agreements between the partners such as remuneration based on contribution to partnership's business, then A is entitled to the balance of the profits not previously drawn. Does drawing the profits retained in the business require both partners to sign bank transaction? From a very similar experience with a client (my partner A thought she would be able to withdraw the balance of her capital account when she retired), this could prove a costly legal exercise with no satisfaction for A.
I am assuming the company doesn't own the land either leasehold or freehold. On what basis does it own the building apart from paying for it to be built? If there is no option to tax, there is no entitlement to claim the input tax on building the garage/office as the rents will be exempt and the eventual sale will also be exempt for VAT purposes.
Hallelujah any version
Pencil Full of Lead by Paolo Nuttini
Sitting on the Dock of the Bay
Rise by Gabrielle