After retiring, I started an e-commerce business selling hardware via Ebay and via my own web site. Before too long it may exceed the £85,000 VAT threshold.
I have no desire to get involved with VAT at my stage in life, so was wondering if the following arrangement would work with adult my son who lives at a different address.
1. I sell him the web site through which he markets the same products.
2. He buys his stock direct from the same supplier that I use.
3. He consigns that stock to me and I package and despatch it on his behalf to his buyers.
4. I charge him a management/handling fee for every package that I despatch on his behalf to his customers.
5. He keeps the margin between product cost and retail as his profit and he pays tax on that profit.
Is this sufficient separation to avoid being accused of dis-aggregation?
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