OnTax Dunfermline Accountant Consider:

Can I Have More Than One Vat Registration?

It's A Very Interesting Question! Can There Be Benefits?
We Examine The Workings Of Vat Registrations.

Can I Have More Than One Vat Registration?

We Are A Dunfermline Accountant Who Love To Answer Your Questions!

Dunfermline Accountant, OnTax, were approached by a trader recently and asked if it was possible to have more than one vat registration. This had us scratching our heads as we had never been asked that before at OnTax Dunfermline Accountant.

With a little help from our friendly vat adviser, we were reminded here at OnTax Dunfermline Accountant that it is the person or company that registers for vat, not the "business". This is an important distinction, having carried out more vat registrations than we can remember, OnTax Dunfermline Accountant are very aware that HMRC refer to the registered entity as a "taxable person" not a "taxable business".

Why The "Taxable Person"?

OnTax Dunfermline Accountant confirm that HMRC do not allow a person to artificially break their business up in sub-businesses, (or multiple "taxable persons") in order to avoid vat on what was a turnover that exceeded the vat threshold now being broken up into many sub-businesses whose individual turnover is less than the registration threshold.

Of course, HMRC will not allow this artificial dividing up, however OnTax Dunfermline Accountant advise you not to rule out opportunities for dividing your own business up, there are one or two cases where HMRC have approved of this and the effects are beneficial to the owner.

OnTax Dunfermline Accountant have seen examples of this, such as a joiner who had one vat registered business for his contracts and another none vat registered business for his private work, this arrangement existing so that he could be more competitive on his private work.

As long as this sub-division is carried out under HMRC's blessing, and yes, this is possible (!), there should be no issues.

Multiple Vat Registrations

There are few circumstances where more than one vat registration is required, however we do see them here at OnTax Dunfermline Accountant. A classic one would be where 2 tradesmen who used to work individually under their own vat registrations form a new business to work together on certain contracts whilst retaining their existing businesses.

In cases such as these, a separate vat registration is advised for the new venture. As long as HMRC are made aware of this through giving these details to them on the new ventures application form, then it is possible to have more than one vat registration at the same time.

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