Had a interesting conversation this morning with my accountant, telling him i was setting up a new venture (signs n gfx) he was explaining the pro’s con’s on being VAT registered.
If i go VAT registered with the new venture this will also mean i will have to be VAT registered with my current buisness (already self employed u see) which i have always managed to stay under the VAT thresh hold 🙄
Accountant has told me if i have my wife as a partner in the new venture then she can register as VAT registered which will not make me ellergable to be VAT registered in my present buisness 🙄
Has any1 else had any odd dealings with Tax, VAT man that is worth knowing?
Sure, if you are a sole trader, then it is you personally that are registered so everything you do will be liable for VAT.
But you might be a sleeping minority partner in another enterprise and have absolutely no control over the day to day running of it, and if the turnover is below the threshold how can HM Jackals force registration on your other partners?
Apart from that, in your case, I don’t see how you can separate the two partners. A VAT registration would have to be in the full legal title, that is Mr. and Mrs. Taraswolf trading as Signs n GFX. Joint and several liability and all that.
You can run one business as a sole trader, one as a partnership and one as a limited company as long as your partner/director in the limited company is not the same as in your partnership.
Any money you take out of the partnership or ltd company will count towards your sole trader turnover so you need to watch that you stay under the threshold as a sole trader.
That sounds more sensible Ian. Of course, sensible isn’t always legal! 😀
Then I suppose the trick is, as long as you are actually working for the limited company, to keep your PAYE remuneration under the threshold and take extra money out as dividends, which are not normally liable for VAT.