VAT and 2 busineses?

Skiny

I currently have a business that is VAT registered and am looking to start my second one.

Could someone tell me if the second business would automatically be liable for VAT, even if the turnover is under the threshold? The two businesses will be completely different from one another, so it's not like some sort of artifical seperation.

I read somewhere that a ltd company + sole trader is acceptable. Is this correct?

Thanks

Pennywise

If you're a sole trader, your VAT registration is personal to you, not the business, so all other sole trader businesses will be automatically covered by the original VAT registration.

If your new business is conducted through a limited company, then there is a legal separation and as long as both businesses are truly independent of eachother and both could operate without the other, then the ltd co wouldn't come under the same VAT reg.

Skiny

Ah thanks, I thought this would be the case.

Can I convert the current business to a ltd company and then start a new sole trader business to do it that way Does that make any difference?

How about 2 seperate ltd companies?

Thanks for your help.