[martin hulstone]

Has anybody split there business in two to avoid paying vat? Say one business commercial and one residential.
I employ two men and am creeping into vat zone but begrudge the vat as there is very little to claim back in our business compared to what vat we have to pay out, plus all the extra paperwork. I also do not want to become a big company, happy with me and two lads.
will speak to an accountant but just wanted to ask if anybody has done it or something  similar.

[Mick Kent]

Stay as you are then if you dont want to go VAT. Keep under it.

[Lee Pryor]

Has anybody split there business in two to avoid paying vat? Say one business commercial and one residential.
I employ two men and am creeping into vat zone but begrudge the vat as there is very little to claim back in our business compared to what vat we have to pay out, plus all the extra paperwork. I also do not want to become a big company, happy with me and two lads.
will speak to an accountant but just wanted to ask if anybody has done it or something  similar.

You really cant do the splitting in 2 thing. If either company share so much as a pen the VAT man will have you. Best advice is stay under or commit to getting to at least 120K turnover. If planned properly that's easy and being VAT registered is not the nightmare people think it is. Our quarterly bill is rarely over 10% of the turnover of that quarter. People forget that everything you spend reduces the bill.

[Soupy]

You really cant do the splitting in 2 thing. If either company share so much as a pen the VAT man will have you. Best advice is stay under or commit to getting to at least 120K turnover. If planned properly that's easy and being VAT registered is not the nightmare people think it is. Our quarterly bill is rarely over 10% of the turnover of that quarter. People forget that everything you spend reduces the bill.

You can split your company in 2 if you like, however it's not easy to do legally (possibly impossible) so it won't be long before you get a massive fine and/or prison sentence. Speak to an accountant.

Being VAT registered is a pain, giving away 20% of your turnover is heartbreaking, but like Lee says, purchasing is easier.

[Richard iSparkle]

Has anybody split there business in two to avoid paying vat? Say one business commercial and one residential.
I employ two men and am creeping into vat zone but begrudge the vat as there is very little to claim back in our business compared to what vat we have to pay out, plus all the extra paperwork. I also do not want to become a big company, happy with me and two lads.
will speak to an accountant but just wanted to ask if anybody has done it or something  similar.

flat rate is only 12% i think off the top of my head.

this works out cheaper for me as we don't have many expenses after wages

[Stoots]

How does flat rate VAT work?

[Richard iSparkle]

How does flat rate VAT work?

you pay 12% tax. you cannot reclaim VAT except on large purchases, so something like £800 or more i think it is

you charge all your clients 20% VAT (so you keep the difference)

[8weekly]

Flat rate is going.

[Richard iSparkle]

Flat rate is going.

what have you heard and where?

[8weekly]

Flat rate is going.

what have you heard and where?

In the last budget. It's not going completely, but it's rising to 16% and qualifying is tougher. Speak to your accountant.

[martin hulstone]

Thanks for all you replys, i was considering going bigger on the flat rate scheme, but as already mentioned it is being phased out.
Such a shame as we do not really buy lots of things .

[Marc Stock]

Has anybody split there business in two to avoid paying vat? Say one business commercial and one residential.
I employ two men and am creeping into vat zone but begrudge the vat as there is very little to claim back in our business compared to what vat we have to pay out, plus all the extra paperwork. I also do not want to become a big company, happy with me and two lads.
will speak to an accountant but just wanted to ask if anybody has done it or something  similar.

This is illegal.

[Nick Day]

Check with your accountant, but if you set up MH (residential) window cleaning Ltd and MH (commercial) etc Ltd then they are treated as separate companies.

[Martin Lane]

if you run two companies doing the same thing from the same address   I'm sure the tax man would class them as one company

Martin

[Stoots]

The new vat rates a bugger then. Such a nasty obstacle for those wanting to grow.

[Martin Lane]

if the new flat rate is going up to 16.5% you must be better off going on the full 20% rate, you  will claim back more that the 3.5% extra you pay