Vat - artificial separation

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
A chiropodist who also (and separately) sells beauty products from same premises. Can she run two businesses from same premises to legitimately avoid Vat registration, or would this be regarded as artificial separation?

Thanks.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Vat - artificial separation

    If she's a sole trader for each business then her VAT registration will cover all of her activities.
    If either or both businesses were Ltd Companies or partnerships then I don't know whether it could be done legitimately.
    jodie
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Vat - artificial separation

    I thought this would be ok if both business were entirely different, as these seem to be!? A letter to the VAT-man would be the best way to solve this one!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Vat - artificial separation

    HMRC will apply disaggregation rules to test if there are really 2 separate entities in business.

    Decision is HMRC's not hers

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