Self Emplolyed VAT

[skitter]

Last question today.

Following on from the thread about starting a second business when already self employed.

If I am VAT registered (flat rate) on my first business (ie. roofer), must I charge VAT on the second one (ie. funriture seller) please or is this treated seperately ?

Thanks.

[David Griffiths]

No, it is you that is registered, not the business, which means that you have to account for VAT on all businesses

If the second business is genuinely separate, you could run it through a different medium, such as a limited company or a partnership and it would not need to be registered until it hits the threshold. However, HMRC has powers to prevent artificial separation of businesses to avoid VAT. It will also keep a sharp eye out for VAT related to the non-registered business being claimed through the other one! They weren't born yesterday, you know.

Of course, it might suit to have the second business registered depending on the customer base