VAT

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Question, I beleive that you cannot split your income with your partner to avoid VAT registration. Is this correct and if so where can i find reference to it (osbourne book ?) or somewhere else.<BR><BR>many thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAT

    Try the customs and excise web site, they have loads of info on there.<BR><BR>Sarah
  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAT

    Sarah,<BR><BR>Thanks for the advice. I have had a look at the C&E website and there is a lot of info there but i am still unable to find specific info on tranfer of income to a partner to avoid registration. <BR><BR>Any other suggestions ?<BR><BR>inky.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAT

    Just re-read your thread and realised what you said. VAT registration is dependant on turnover not income, so if your turnover exceeds £58,000.00 per annum i.e you have that amount of taxable supplies (sales) and your business coincides with all the VAT regulations then you must register for VAT, even if it is a partnership the business will be assessed exactly the same as a sole trader. If you check out the business link website there is loads of info on there about VAT registration.<BR><BR>Maybe you were thinking about income tax, there are ways of splitting your income with a partner to avoid the higher rate of income tax, but you must be able to prove that the partner is employed by you and genuinely works for you and isn't just being paid to sit at home!<BR><BR>Hope this helps a bit more. Going on holiday tonight so won't be on line for a week.<BR><BR>Sarah
  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAT

    In the past, it was possible to split a pub into drinks business run by husband and food run by wife. They would have separate registrations.<BR>C&E don't like this! Some businesse are still run like this and they get away with it<BR>If they think that you have made an arrangement to circumvent paying VAT, C&E can direct that it is to be treated as one business.<BR>Separate bank accounts and written agreements about shared resources mat help, but if there are financial, economic and organisational links then you are in trouble.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    VAT

    Sorry i have not replied (to busy doing homework !!) <BR><BR>Many thanks to both of you for the advice, it was vey helpful and i managed to get through the assignment.<BR><BR>inky.

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