aggregation and separation

[Feedback]

if a person had a cleaning business which is currently trading just under the threshold and wanted to start a fitness/training business, would setting up a limco for the new business be seen as artificial separation apropos of VAT. Both businesses would have common ownership e.g. the sole trader would be the director of the limco.

both businesses are B2C

[les35]

Since the busines activities are quite distinct, I would be surprised if HMRC took actual to aggregate the turnover. But you will need to ensure there is no appearance of the two being one! So, seperate legal entities are essential, seperate bank accounts, different trading styles, etc.
You shoudl check out this guidance just to make sure: https://www.gov.uk/government/publicati ... ice-4-1983