I am looking into taking on more commersial contracts and, I know this may have already been covered, I need some advice on voluntary VAT.
As far as I can see I have three choices:
1 stay as I am as domestic customers dont want to pay VAT.
2 Split the business in two and register the commercial side for VAT.
3 Keep the business whole and bite the bullet hoping not to annoy the domestic clients.

I just cant make up my mind any help would be much appreciated.

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Number 2 looks the best idea to me, i recently had a conversation with my accountant who suggested something similar
I can't see a problem running two seperate business' as long as the combined turnover is below the VAT threshold.
I not sure you can do no. 2 if you are Self Employed/Trading As even if it is a voluntary registration ?

I was told HMRC will treat income from any source as 'one' (and therefore would be assessed via a single self assessment form), thus potentially pushing you T/O above the vat threashold and thus registration required.

I understand it is possible if both business are Ltd companies are they are seperate entities, with seperate accounts (and costs...).

I am also sure there are some HMRC tax avoidance rules to stop you having, say, 10 companies all roughly in the same business sector and trying to keep each companies t/o below VAT threshold.

As they say; there are only two things certain in life - paying tax and death !!!
My accountant has said all of that! you should go into accoutancy gary!!!

gary @ affinity landscapes said:
I not sure you can do no. 2 if you are Self Employed/Trading As even if it is a voluntary registration ?

I was told HMRC will treat income from any source as 'one' (and therefore would be assessed via a single self assessment form), thus potentially pushing you T/O above the vat threashold and thus registration required.

I understand it is possible if both business are Ltd companies are they are seperate entities, with seperate accounts (and costs...).

I am also sure there are some HMRC tax avoidance rules to stop you having, say, 10 companies all roughly in the same business sector and trying to keep each companies t/o below VAT threshold.

As they say; there are only two things certain in life - paying tax and death !!!

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