Registration

[FFS]

If I am a sole trader in one business and a partner in another business do I have to register for vat if the total of both turnovers exceed vat . My main business is as a sole trader and turnover is below the threshold however by adding the turnover of the partnerhsip I am over the vat threshold.

If I did have to register this would seem harsh on the other partner from the partnerhsip as that is there only trade ?

[spidersong]

The short answer is no.

VAT registration deals with the Legal Entity running a business. So a Sole Proprietor 'A' in business is different to a partnership of A & B, which in turn is different to a partnership of A, B, & C, or A & C etc.

If a single entity runs multiple businesses i.e. A is both a motor mechanic and tree surgeon then these turnovers are amalgamated to decide whether A needs to be registered for VAT.

The only caveat is if they are both similar businesses, using the same resources e.g. A builder does paving and driveways on his own, but in partnership does extensions and porches, and he runs both from the partnership yard using tools accesible to both partners, using a single phone to take orders, then HMRC can take the view that, no matter how the people involve wish it to be described, that it is in fact a single business for VAT purposes and therefore the joint turnover will be used to decide registration.

Hope this helps

[FFS]

Thankyou very much for your help.