Vat registration question

zephyr Registered Posts: 24 New contributor 🐸
Please help, my mind has gone blank.

I have a husband and wife partnership that is VAT registered.

They have formed a new partnership with husband's mother also - a new business not connected.

As the husband and wife are already registered for VAT, does that mean the new partnership must also be?

Or is the fact that is different people make it that is doesnt need to be, as it is a separate entity. The new partnership is well below the threshold.

Many thanks


  • jamesm96
    jamesm96 Registered Posts: 523
    For VAT purposes, the individual or organisation that is in business is known as a 'taxable person'. A 'taxable person' can be an individual, a partnership, a company, a club, an association, a charity, or any other organisation or group of people acting together under a particular name, such as an educational or health institution, exhibition, conference, etc.

    If they're two different partnerships, both separately registered with HMRC, then the new business need not be VAT registered. The only caveat I'd put on that is that if the second partnership is doing the same type of work, using broadly the same people and equipment as the first partnership then there's an 'artificial separation' issue.
  • zephyr
    zephyr Registered Posts: 24 New contributor 🐸
    Many thanks. That is originally what I thought, but then starting questioning myself! No the businessess are not related and are held in different premises.

    It is also a relief as they have been trading a year before mentioning it to me!
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