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VAT Registration for S/E

Hi, just a quick question if anybody knows the answer please.

Can I be self employed with two business's and have one registered for VAT and the other not?

The business's are unrelated to each other.

Any help would be appreciated, thanks.

Comments

  • As a Sole Trader?
  • Anchoress
    Anchoress Posts: 118 Forumite
    edited 3 September 2014 at 7:35PM
    Thanks for replying. Yes it would be as a sole trader.

    If that's not possible could I have a limited company and a sole trader company?
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    As a sole trader it's not the business but the individual that is registered for VAT.
    You could have a partnership and a sole tradership one VAT registered and one not if that helps.
    Why do you want to be VAT registered? That is the first question.
    The only thing that is constant is change.
  • zygurat789 wrote: »
    Why do you want to be VAT registered? That is the first question.

    I don't but one business has a turnover that will likely exceed the VAT threshold due to high material costs.
  • phill99
    phill99 Posts: 9,092 Forumite
    Part of the Furniture 1,000 Posts
    Anchoress wrote: »
    I don't but one business has a turnover that will likely exceed the VAT threshold due to high material costs.

    One business doesn't have a turnover exceeding the VAT threshold. YOU as a sole trader have a turnover that exceeds the limit.

    There is no legal distinction between you and your business. How you arrive at that income is irrelevant. You could be a photographer and a mechanic, with a turnover of £50k from each one. As your TOTAL turnover is £100k, you will need to register for VAT.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    Anchoress wrote: »
    I don't but one business has a turnover that will likely exceed the VAT threshold due to high material costs.

    Are you sure you shouldn't be registered already?
    The only thing that is constant is change.
  • JasonLVC
    JasonLVC Posts: 16,762 Forumite
    Part of the Furniture Combo Breaker
    All good advice, the OP hasn't explained if the two trades are similar.

    So even if we resolve the issue of sole trader income being split into a sole trader registered for VAT and a new partnership or new Ltd not being registered for VAT, if the two "businesses" are in the same sector/trade HMRC will attack it as tax avoidance under dis-aggregation rules.

    So if OP is say a builder and he splits sole trader into sole trader window fitting and partnership building business, there might be an issue.
    Anger ruins joy, it steals the goodness of my mind. Forces me to say terrible things. Overcoming anger brings peace of mind, a mind without regret. If I overcome anger, I will be delightful and loved by everyone.
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