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• # 113305
• Wed 29 Jun 2016 08:14 PM

Hello all,

I mange the books for a partnership that has a small B&B business and a couple of furnished holiday lets.  Their total turnover over the last year is nearing the VAT threshold.  

Their question to me was can they treat their two side of the partnership as seperate businesses, so as to avoid having to register for VAT.

Thanks

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• # 113346
• Mon 04 Jul 2016 12:51 PM

I would say that as the partnership is a business run in partnership by 2 or more people then it is the one Partnership that would be liable to VAT, and you can't separate out the two separate sides of the business within the one partnership to determine liability for VAT.  The only way to overcome this would be to trade separately as two discrete businesses, with separate business accounts and bank accounts etc.

Could the B&B be run through the partnership, and the furnished holiday lets be accounted for through the partners' self assessment returns instead?

Kind regards

Debbie

• Debbie
  www.beckcottage.com
  
  

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• # 113401
• Sat 16 Jul 2016 08:28 AM

I agree with Debbie that it sounds as if the two busnessess are all under the same umbrella and would be liable for VAT, especially as they are both owned by the partnership.  Had it been only one of them owning the lets that would have been different.  

Dont forget that the VAT is a rolling year not a tax year so check they havent now hit it.  

Regards

Liz

• Time can never be replaced. Spend it wisely.

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