If you have two sole trader business's - one of which is vat registered - do you add vat to the other business, or only if you earn more than 57K for that business alone? Or do you look at your total sole trader income from all your businesses?
e.g.
Business 1 turnover: 80K - vat registered Business 2 turnover 50K - will this be vat registered because you have turnover of 130K total or only if it exceeds the vat threshold?
Thanks,
Jon
Umm, my understanding is that it is impossible to have two sole trader businesses unless each is owned by separate individuals. As far as Inland Revenue and HMC&E are concerned you are a sole trader and your total turnover/income are the figures they are interested in. You only have one allowance.
If you want to do what you indicate you *must* form a limited company for at least one and preferably both businesses.
Vat Registration is done by person not by business.
So business 2 should have charged VAT from the date business 1 was registered (or should have been registered), or its commencement if later.
Or a partnership.
You only have one personal allowance for income tax purpoes, but you fill in a different set of self-employment pages for each business.
I don't think so. But the two businesses would need to be completely different, e.g. a plumber's and a bike shop, in order to escape being treated as one for VAT purposes.
No. If you were a sole trader with these two businesses they would be lumped together for VAT purposes. One would have to be different legal entity, e.g. a limited company, for them to be different. If the other business was owned by another sole trader (your wife?) then that's different.
Rob Graham
The limit is £58k.
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