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Post Info TOPIC: VAT Registered Partnership - Two Businesses
Wella


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VAT Registered Partnership - Two Businesses
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Has anyone any idea of the VAT position of a partnership that operates two separate businesses?

The core business and main income is from construction and instillation services.

The second is as far removed from that as it is possible to get but still owned by the partnership (father & two sons). A fishing lake with the intention to rent fishing rights + online fishing equipment sales. It is new at the moment and it is all outgoings.

Can the two be operated under the same banner of the core business?

Bill

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kjmcculloch


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My understanding is that the partnership is a taxable person, therefore if they carry out two separate types of trading it is their combined turnover that determines the need to be VAT registered or not.

It is also my understanding that a way to avoid this is to set one up as a limited liability company as it would seem, on the face of it at least, to satisfy the HMRC that this is not an artificial split for sole purpose of avoiding VAT.

However, I am happy to be proved wrong.

Kris

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Kris McCulloch 
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The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
Wella


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Hi Kris

Thanks for the input.

The partnership is already VAT reg'd but I was a bit concerned about claiming back VAT on a new business ( they are treating them as a single business anyway as everything is coming out of the core business

Bill

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