Vat question business seperation

by **abc-inflatables** on Sun Jan 29, 2012 11:34 am

Can a husband and wife run a business each from the same address?
They Both sell on Ebay
One sells tools and the other sells soft furnishings.
One is close to the VAT threashold If you add both together there over the threashold.

Would HMRC class it as business seperation?

by **abc-inflatables** on Sun Jan 29, 2012 12:01 pm

Hi
It looks like i have posted this in the wrong place, I have found the answer now

http://www.taxationweb.co.uk/tax-articles/vat-excise-duties/will-splitting-my-business-save-vat.html

by **mullet** on Sun Jan 29, 2012 1:08 pm

In broad terms if you each operate in your own name with separate Paypal/bank accounts and (importantly) sell distinctly different items, then HMRC would have difficulty in arguing that this was a single business.

by **abc-inflatables** on Sun Jan 29, 2012 3:29 pm

Thankyou
Thats just the anwser i was hopeing for.

by **abc-inflatables** on Sun Jan 29, 2012 3:37 pm

Hi
Is it just sell distinctly different items, Can the same wholesalers be used?

by **mullet** on Sun Jan 29, 2012 9:44 pm

Can the same wholesalers be used?

I wouldn't see that as a big issue on its own, but it would be one of a number of aspects to be taken into account in deciding whether or not it was one business entity. Make sure that you are invoiced separately and pay for your goods separately.