- Original Poster
- #1
I run a company which is on the VAT flat rate scheme. This has actually been a life saver for us due to the fact that we collect 20% VAT from other companies but only have to pass on (I believe) 12% to the VAT Man. This has generated around £20,000 p/a for us over the last 3 years.
However recently we went over the flat rate scheme by £12,000 & the VAT man has told us to come off it. We can stay on if we can prove we went over as a one off which is true, but we are in general dangerously close to the £230,000 p/a limit.
My question.
Could I legally split my company & thus create a new one that does exactly the same thing as the old one but put the work I get from one particular large client through it.
The businesses addresses would be the same.
The £20,000 I make from the flat rate scheme really props my business up & if we lose this we will probably fold.
I'd really appreciate any advice on tis subject?
However recently we went over the flat rate scheme by £12,000 & the VAT man has told us to come off it. We can stay on if we can prove we went over as a one off which is true, but we are in general dangerously close to the £230,000 p/a limit.
My question.
Could I legally split my company & thus create a new one that does exactly the same thing as the old one but put the work I get from one particular large client through it.
The businesses addresses would be the same.
The £20,000 I make from the flat rate scheme really props my business up & if we lose this we will probably fold.
I'd really appreciate any advice on tis subject?
