Sole Traders Sharing Retail Premises

wwjxw03 · 1 March 2017 at 4:48PM

I am a sole trader operating below the VAT threshold and I am thinking of sharing some retail premises with another sole trader who sells different products. We would share the expenses related to the shop but continue to keep our separate sole trader accounts. Can our income in the shop go into a single bank account and then be shared out. We would not be in partnership and the bank account would be a collecting account only. This is a bit like an antique shop who seems items for other traders. It that situation, is the antique shop liable for VAT only on the commission it takes or is it the whole income?

martindow · 2 March 2017 at 12:37PM

It's rather different to the antique shop because in that case they take the money deduct the commission and pay out the rest to the people whose goods were displayed in the shop. There is one business who acts as an agent for the individual suppliers of items to sell.

In your case would it be best if you had two tills so that sales could be rung up on the appropriate one? Generally speaking it is best to try to keep things as separated as possible to keep the books straight. VAT only adds to the complication.

Sole Traders Sharing Retail Premises

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