VAT Threshold Question
ncfc1988
Registered Posts: 1
in Business Tax
Hi hoping someone here can help.
Firstly I am not talking about splitting a business. This is referring to creating a new business
I run my own private eBay business to which my turnover is around 80k. I keep myself under the VAT threshold as the business model would no longer be viable if I was to have to charge VAT.
My partner works part time and we have 1 child. Said child will be going to school soon and partner has asked me about the possibility of looking into her starting her own business so we would have no issues around childcare.
What she is considering doing as an eBay business would be viable and profitable and would be separate And different products from what I currently sell.
So she would set her own business up, with her own business bank accounts, in her own name, selling different products to what I currently sell. The 2 businesses would be completely separate entities other than the fact that the 2 persons running are in a relationship. (If I had my job and was single and met someone who had there's and we formed a relationship surely we would maintain our own VAT Thresholds?)
We are not trying to find a way round the VAT threshold in order to make more profit. As indicated she would be giving up her job and wage for this to bring in a very similar income. So we are not looking to do this to try and make more profit. Would both businesses be able to have their own VAT threshold based on the above? And if they did would they require separate business registered addresses or would the same address be fine as they are completely seperate?
Hoping someone can offer some advice on this please.
Kind regards
Rob
Firstly I am not talking about splitting a business. This is referring to creating a new business
I run my own private eBay business to which my turnover is around 80k. I keep myself under the VAT threshold as the business model would no longer be viable if I was to have to charge VAT.
My partner works part time and we have 1 child. Said child will be going to school soon and partner has asked me about the possibility of looking into her starting her own business so we would have no issues around childcare.
What she is considering doing as an eBay business would be viable and profitable and would be separate And different products from what I currently sell.
So she would set her own business up, with her own business bank accounts, in her own name, selling different products to what I currently sell. The 2 businesses would be completely separate entities other than the fact that the 2 persons running are in a relationship. (If I had my job and was single and met someone who had there's and we formed a relationship surely we would maintain our own VAT Thresholds?)
We are not trying to find a way round the VAT threshold in order to make more profit. As indicated she would be giving up her job and wage for this to bring in a very similar income. So we are not looking to do this to try and make more profit. Would both businesses be able to have their own VAT threshold based on the above? And if they did would they require separate business registered addresses or would the same address be fine as they are completely seperate?
Hoping someone can offer some advice on this please.
Kind regards
Rob
0
Comments
-
If you are both registering as separate sole traders and the businesses are completely separate then the VAT threshold will apply to each business separately as they are two individual entities.0
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