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Where Taxpayers and Advisers Meet

Is this allowed??!

BunsterBun
Posts:1
Joined:Thu Jun 24, 2021 11:28 am
Is this allowed??!

Postby BunsterBun » Thu Jun 24, 2021 11:50 am

Hi,

I'm hoping someone can help me!

My husband has a VAT registered gardening business, and I work for him as an employee. He often buys plants and trees for customers. He reclaims VAT on these purchases and obviously charges VAT on these items when he sells them to his customers.

I have my own Non-VAT registered Christmas tree business and my husband helps me with this as an informal, unpaid employee.

I'm wondering if it would be legal for my husband's gardening business to buy Christmas trees from the supplier (and reclaim the VAT on this purchase) say for £10,000+VAT (as an example) and sell them to my Christmas business for say £1,000+VAT (again just as an example) which I can then sell to my customers for a profit, say £20,000, without any VAT as I am not VAT registered?

Is that legal or am I being completely ridiculous to think that might be an option?! 😬 Obviously I don't want to do anything that might be considered tax evasion!

Many thanks in advance.

pawncob
Posts:4704
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Is this allowed??!

Postby pawncob » Thu Jun 24, 2021 8:20 pm

https://www.thefriendlyaccountants.co.uk/business-splitting-and-vat-avoidance/
With a pinch of salt take what I say, but don't exceed your RDA


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