Hi,
I would be grateful if anyone can help with the following query.
A and B are partners in a VAT registered business.
They (A and B) commenced trading in another business, again as partners, in a business with standard rated supplies. Obviously this new business must charge VAT on its sales, irrespective of the level of turnover, by virtue of the fact that the partners are registered persons.
A and B want to introduce C, currently an employee,as a partner in the new business. The purpose of this is to give C an incentive to develop the new business allowing A and B to devote more time to their original business.
What are the VAT implications on the new business bearing in mind that the turnover of this business is way below the registration threshold.
Does the introduction of a third party create a new entity for VAT purposes?
Any constructive comments would be greatly appreciated.
Cheers.
Raymie
Value Added Tax
2 posts • Page 1 of 1
Value Added Tax
by Raymie on Mon Mar 23, 2009 12:57 pm
- Raymie
- Posts: 3
- Joined: Thu Oct 30, 2008 12:47 pm
Re: Value Added Tax
by pawncob on Fri Sep 23, 2011 5:46 pm
No it doesn't. You just have to inform HMRC of the new structure. Down load the partnership form from the HMRC site.
With a pinch of salt take what I say, but don't exceed your RDA
- pawncob
- Posts: 2262
- Joined: Wed Aug 06, 2008 4:06 pm
- Location: West Sussex
2 posts • Page 1 of 1
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