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VAT for individual separate to VAT for small company?
-
chrisway99@yahoo.co.
- Posts:3
- Joined:Wed Aug 06, 2008 3:05 pm
I currently own property which brings in rent of about 22,000 pounds. I want to start up a small hotel and incorporate the business (separate from the rental income). What is the turnover threshold before having to charge VAT? Can the rental income be deemed separate from the hotel income? Is there any way of getting around this problem since having to charge for VAT would make the project not viable?
-
paultaylor@vatease.c
- Posts:397
- Joined:Wed Aug 06, 2008 3:02 pm
The VAT registration threshold is currently £56,000. If your turnover for the previous 12 months exceeds this level then you must register for VAT.
Each legal entity looks at its own turnover only, so the turnover for the Ltd Co will be seperate from the turnover for you as a sole prop.
If the Ltd Co exceeds the registration threshold there is no way of avoiding registration. However, you are quite at liberty to ensure your turnover is kept below the limit.
Incidentaly, you do not mention what type of property rental income you make. Most (but not all) rental income would be exempt from VAT and would not count toward the registration limits anyway.
Regards
Paul Taylor
http://www.vatease.co.uk/
Each legal entity looks at its own turnover only, so the turnover for the Ltd Co will be seperate from the turnover for you as a sole prop.
If the Ltd Co exceeds the registration threshold there is no way of avoiding registration. However, you are quite at liberty to ensure your turnover is kept below the limit.
Incidentaly, you do not mention what type of property rental income you make. Most (but not all) rental income would be exempt from VAT and would not count toward the registration limits anyway.
Regards
Paul Taylor
http://www.vatease.co.uk/
