Splitting business to fall below VAT threshold

[s2sol]

I'm a subcontractor and do a fair amount of work for a sole trader who is looking to retire. He's offered to sell me the business. There's a fair distance between us as to what it's worth, but that's something we could sort out ourselves.

The business is VAT registered, and probably 70% of the customers aren't. However, there are two parts to the business, as far as I can see. It's broadly analogous to vehicle body repairs on one side, and mechanical repairs on the other. The body repair side's costs are probably 85% labour and 15% parts. The other side is more evenly balanced.

Is it feasible to operate as 2 discrete businesses sharing the same premises, with both businesses falling below the vat threshold? Clearly, one of the businesses would have to pay the rent and utilities, and charge the other. There would be one FT member of staff for each business, and possibly an apprentice.

[s2sol]

Thanks, Nick. It's not a body shop and workshop, but broadly similar. I've had a look at the disaggregation rules, as advised above, and I think it probably isn't for me.