VAT Conundrum...
Discussion
Can you restructure so that different aspects of what you do go to different businesses?
I assume that you're a sole trader, can you push the expert witness stuff into a partnership - you and oh?
I used to know an accountant who had three differnt partnerships each dealing with a different aspect of his business - for the same vat reasons.
I assume that you're a sole trader, can you push the expert witness stuff into a partnership - you and oh?
I used to know an accountant who had three differnt partnerships each dealing with a different aspect of his business - for the same vat reasons.
TooLateForAName said:
Can you restructure so that different aspects of what you do go to different businesses?
I assume that you're a sole trader, can you push the expert witness stuff into a partnership - you and oh?
I used to know an accountant who had three differnt partnerships each dealing with a different aspect of his business - for the same vat reasons.
I wonder how he planned to deal with any HMRC challenge in regards to "Disaggregation"?I assume that you're a sole trader, can you push the expert witness stuff into a partnership - you and oh?
I used to know an accountant who had three differnt partnerships each dealing with a different aspect of his business - for the same vat reasons.
Could you not just seperate the work?
Start another company that solely does the legal work. You could say you had to do this for liability reasons. ie there is a lot of liability on your part as an expert witness and you wouldn't want it to muck up your other business if someone sued you.
If you really want to make them different add your spouse as a shareholder in one only.
Both companies would then be under the VAT threshold.
Start another company that solely does the legal work. You could say you had to do this for liability reasons. ie there is a lot of liability on your part as an expert witness and you wouldn't want it to muck up your other business if someone sued you.
If you really want to make them different add your spouse as a shareholder in one only.
Both companies would then be under the VAT threshold.
Garage19 said:
Could you not just seperate the work?
Start another company that solely does the legal work. You could say you had to do this for liability reasons. ie there is a lot of liability on your part as an expert witness and you wouldn't want it to muck up your other business if someone sued you.
If you really want to make them different add your spouse as a shareholder in one only.
Both companies would then be under the VAT threshold.
I would do this and argue the difference if every challenged. The other technique, borrowed from the building trade, seems to be to simply close one business and open another when approaching the threshold. Enough people seem to do it without getting caught, you could use the same liabilities point as above.Start another company that solely does the legal work. You could say you had to do this for liability reasons. ie there is a lot of liability on your part as an expert witness and you wouldn't want it to muck up your other business if someone sued you.
If you really want to make them different add your spouse as a shareholder in one only.
Both companies would then be under the VAT threshold.
I am definitely not an accountant btw but the only option I would avoid is not growing the business.
It strikes me that if you are overworked, and VAT will mean adding 20% to your fees (are your clients the general public?) then the solution to both these problems is to charge 20% more without vat registering, which will make business drop off a little giving you the same income for less work.
In other words, if your clients will swallow a 20% rise then you can either give that to HMRC in VAT or use it for a bit of time off for yourself.
In other words, if your clients will swallow a 20% rise then you can either give that to HMRC in VAT or use it for a bit of time off for yourself.
NorthDave said:
I would do this and argue the difference if every challenged. The other technique, borrowed from the building trade, seems to be to simply close one business and open another when approaching the threshold. Enough people seem to do it without getting caught, you could use the same liabilities point as above.
I am definitely not an accountant btw but the only option I would avoid is not growing the business.
Eventually, the effort required to constantly keep one step ahead of the VAT or taxman means that you begin to lose focus on the actual work you should be doing - which is building a successful business.I am definitely not an accountant btw but the only option I would avoid is not growing the business.
Gassing Station | Business | Top of Page | What's New | My Stuff