Ltd company director, sole trader too?

[stinkyspanner]

I'm in the unenviable position of being a VAT registered Ltd company director who's business has collapsed due to Covid 19 and so not eligible for any meaningful government help. If I wanted set up as a sole trader in an unrelated small business, which isn't likely to hit the VAT threshold presumably I don't need to register for VAT?

[Stay in Bed Instead]

I would agree, you do not need to register your sole trader business for VAT if under the threshold.

[Countdown]

No

[stinkyspanner]

Thank you

[Eric Mc]

As long as it is unrelated you are fine.

To be unrelated, it needs to be carrying out a fundamentally different activity.

[unpeople]

I've looked into setting up a separate entity for VAT reasons, as I sell to two broadly separate client types selling related, but slightly different services, one of which is largely not VAT registered. But in the end there was too much overlap. The non VAT customers would occasionally buy the other service.

If the service is related, but the customer base is genuinely segregated, I might have took it further and sought more advanced advice.