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Richard iSparkle

  • Posts: 2491
as others have said.

1. get a decent accountant (if you haven't already) and ask them
2. you cant really split them. you'll be fine doing so .. as long as you don't get looked into. you might get lucky, but not worth the stress.
3. if you want to grow get VAT registered and make the savings where you can. if you split them you have 2 sets of accounts, 2 mail boxes, separate insurance, separate fuel cards  etc etc. lots of your time wasted

i went VAT registered about 5 years ago. it was a massive strain for me agonizing over the decision you're making now. make sure you have your accounts and business running smoothly before you do, and make sure you put your prices up (i wouldn't recommend 20% though, i did £1 per domestic client which brought in about £450 extra a month)

now my accounts are running very smoothly and my business is simpler as a result. i pay VAT monthly myself so i dont get behind

R
iSparkle Window Cleaning

www.isparklewindowcleaning.uk

NWH

  • Posts: 16952
There’s no debate about this Richard you cannot split the business it’s fraudulent and someone would be trying to make it look like they have no income from the other one for Tax reasons,if it was a simple case of being able to  do this I would have done this years ago not really a good idea to say you might get away with it but you might get looked into m8.

Richard iSparkle

  • Posts: 2491
There’s no debate about this Richard you cannot split the business it’s fraudulent and someone would be trying to make it look like they have no income from the other one for Tax reasons,if it was a simple case of being able to  do this I would have done this years ago not really a good idea to say you might get away with it but you might get looked into m8.

i dont think i ever said there was a debate?
iSparkle Window Cleaning

www.isparklewindowcleaning.uk

C.C.S.

  • Posts: 954
yes you can split into different business if you are LTD. My wife is an accountant and has several clients at work with multiple business so they can avoid paying higher tax ,  one has five I think she mentioned 

NWH

  • Posts: 16952
There’s no debate about this Richard you cannot split the business it’s fraudulent and someone would be trying to make it look like they have no income from the other one for Tax reasons,if it was a simple case of being able to  do this I would have done this years ago not really a good idea to say you might get away with it but you might get looked into m8.

i dont think i ever said there was a debate?

As long as you don’t get looked into that’s not good advise really is it.

Smudger

  • Posts: 13438
yes you can split into different business if you are LTD. My wife is an accountant and has several clients at work with multiple business so they can avoid paying higher tax ,  one has five I think she mentioned

You can have more than one biz - but they can't overlap

For example you may have a bakery biz and a drain clearing biz - running totally different staff etc..

But if you have a bakery and a  cake making biz both running from the same premises and staff ( or anything shared for that matter ) Will been seen as tax avoidance - there are some accountants that if you push them say you can argue this, but when push comes to shove they will tell you it's unlikely you will win any case brought against you and of course they make it clear you were advised not to it by themselves - accountants will never, ever back you up each year you sign to say they did the accounts on information you provided so they are never in the firing line when the tax man calls

Darran
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

NWH

  • Posts: 16952
A good accountant will say I can claim anything for you within reason you tell me what you want to claim for and I’ll advise you whether or not it’s plausible and the likelihood of it being looked into,as Smudger has said a window cleaning business running alongside a cleaning business is an accident waiting to happen,if you had a garage that repairs cars and a window cleaning business that’s a different ball game but gutter cleaning or any other cleaning side I wouldn’t go there.

Kev Martin

  • Posts: 6954
yes you can split into different business if you are LTD. My wife is an accountant and has several clients at work with multiple business so they can avoid paying higher tax ,  one has five I think she mentioned

You need to qualify that statement with your wife.  I have two businesses, they are both limited companies and technically they both do different things.  In fact one business buys Goods off the other.  However, the key is that the same directors run both so as far as HMRC Are concerned there COULD BE a possible conflict of interest so  I play safe and made sure both are VAT Registered. 
I would caution anyone trying to cross the VAT Department of the Revenue!  If you do and they even think something hooky is going on they will start digging deep so you had better be squeaky clean because the onus is on you to prove you don’t owe them the money not vice versa.  I have seen 2 good friends go under through VAT and  whilst I wasn’t certain about one I know that other one was  as straight as a die and in the right.  However, it took  him 3 1/2 years to prove it and by then it was too late and he lost the business anyway. 
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