[mick hay]

For those of you in the know!!

MJ Cleaning has been going for 10 years now.

Im in talks to start another company with a partner, which will still be in the cleaning industry, but will have nothing to do with MJ Cleaning.

It will be a Ltd company, and will be VAT registered. My concern is, as i will be a director of this new company, could this affect the VAT status of MJ Cleaning (which isn't registered, and is  a sole trader business)

I want to keep MJ Cleaning totally separate from the new company.

[Clever Forum Name]

There is a post already on this.

Have a search for it. Vin came up with some very good valid points.

On iPhone otherwise i would have a look.

[Clever Forum Name]

Some useful info.

http://www.cleanitup.co.uk/smf/index.php?topic=193032.0

[Perfect Windows]

Mick,

The other thread quoted (thanks, 23!) does outline my experiences. 

I'd strongly suggest that you ask your accountant to set up a meeting with a VAT specialist.  It might cost but I promise you it'll be worth every penny.  Being assessed for six years of back VAT at some point in the future wouldn't be a joke - you'd be looking at paying out over a  year's turnover.

Provided the businesses are different (which your description suggests won't be a problem) and run separately, you'll be fine.  The devil is in the detail of "run separately".  Now do bear in mind that my VAT guy may have been needlessly pessimistic, so his advice may not have been perfect.  You definitely need expert help on this decision.

Vin

PS. Someone will be along in a minute to tell you their mate runs ten different businesses from his shed, all £1 under the VAT limit.

[Perfect Windows]

By the way, congratulations on the expansion.  Good to hear success stories.

Vin

[mick hay]

By the way, congratulations on the expansion.  Good to hear success stories.

Vin

Cheers Vin,

Yea I'm going to get some professional advice.

Its the right time to expand now, i need to have a long term plan to come of the tools. Im 51 now and working harder than when i was in my 20's...lol

[TomCrowther]

Mick, I have window cleaning business, small and under the vat level. I also gave another Ltd company with a business partner which is vat registered turnover of £500k and although it is another cleaning company it is separate to the other. No conflict and vat man happy.