[Og]

If your limited companies are different enough, then you can keep them separate and avoid vat.
However, if they share the same tools, vehicle etc it's a no no.
I was going to try it with solar panels and windows but nope.
Now I must charge vat.

[Marc Stock]

operating as a sole trader turning over say £70,000 per year,

Why would you want to operate as a sole trader at 70k a year? That's madness. And to have two separate business as a sole trader wouldn't make a difference. A sole trader only completes a personal tax return. So a half partnership on one 70k business and full ownership of the other 70k means that you have a 105k turnover on your self employment, which would require you to register for VAT.

I'd get some decent tax advice if I was you.

[jo5hm4n]

It's clear no matter what i say will change your thinking on this, so i will do just as you ask.  I will get tax advice on this matter directly from HMRC.

Personally i don't plan to even be in this situation for at least a few years, so it's nothing that directly affects the way i run my business at present.

[Arnold Palmer]

They call it artificial separation. They back date your vat when they catch you, as far back as 20 years.

http://www.theaccountancy.co.uk/articles/artificial-separation-company-6639.html

[8weekly]

They call it artificial separation. They back date your vat when they catch you, as far back as 20 years.

http://www.theaccountancy.co.uk/articles/artificial-separation-company-6639.html

The problem is that they actually don't catch the people trading like this or any dodgy way. A perfect example is hairdressers. Most are self employed although they work full time in the same salon and can't choose their days. Classic dodge of NI and holiday pay. Every hairdresser in Newbury operates that way.

[Og]

The cost of the investigation would likely be more than tax returned to hmrc.

[Marc Stock]

They call it artificial separation. They back date your vat when they catch you, as far back as 20 years.

http://www.theaccountancy.co.uk/articles/artificial-separation-company-6639.html

Correct. In fact they can go as far back as 40 years in some blatant cases of VAT fraud. Trust me if they can make an example of you they will throw the book at you.

Not only are you going to have to pay the money back, you may end up doing time in prison.  VAT fraud is very serious, more so than income tax.

[Arnold Palmer]

They call it artificial separation. They back date your vat when they catch you, as far back as 20 years.

http://www.theaccountancy.co.uk/articles/artificial-separation-company-6639.html

However, if you set up a different company (completely unrelated, like say an ice cream van or brothel) then it's a different company and not an artificially separated one.

[andyM]

However, if you set up a different company (completely unrelated, like say an ice cream van or brothel) then it's a different company and not an artificially separated one.

The age old dilemma.....
A 99 or 69?

[jo5hm4n]

They call it artificial separation. They back date your vat when they catch you, as far
back as 20 years.

http://www.theaccountancy.co.uk/articles/artificial-separation-company-6639.html

However, if you set up a different company (completely unrelated, like say an ice cream van or brothel) then it's a different company and not an artificially separated one.

Love how you went from ice cream van to brothel in the same line