can i run 2 companies one with vat and one not

gerry5992

Hi Guys and Girls
I know someone has the answer for me.
I have a business which is up and running . The business is a service business and up to recently is almost made up of all labour .
I was vat registered but deregisterd in january because i didnt think i was going to come close to the 37k threshold this year.
However i have been experimenting with some sales over the last month and i now have a product that i can buy in from europe which is quite easy to sell (i think). If i keep selling it it will push me up over the limit very quickly as it retails at 70 euros. I make about 10 euro profit per item.
The problem being it will most certainly drive me up over the 37k limit so i will have to register for vat again.
Is it possible for me personally to work and earn my 37k in the labour side of the business without being affected by vat and run the company with the sales product as 2 different identities. I would like to register the sales company with a seperate name and website and register it for vat. Can i run it and not take anything from it until it was making a good profit or does this count as part of my 37k turnover and force me to register everything as one business.
If i have to pay vat on my labour i dont think it will be worth it. i wont earn the 37k this year on just labour.
Hope someone may have an answer And i am really grateful for any replys.

DoMyBooks

You can run two companies one VAT registered and one not. But I suspect your a sole trader.

If you are a sole trader as far as I know you cant do this. Either your VAT registered or your not.

scheister

gerry5992 wrote: »

Hi Guys and Girls
I know someone has the answer for me.
I have a business which is up and running . The business is a service business and up to recently is almost made up of all labour .
I was vat registered but deregisterd in january because i didnt think i was going to come close to the 37k threshold this year.
However i have been experimenting with some sales over the last month and i now have a product that i can buy in from europe which is quite easy to sell (i think). If i keep selling it it will push me up over the limit very quickly as it retails at 70 euros. I make about 10 euro profit per item.
The problem being it will most certainly drive me up over the 37k limit so i will have to register for vat again.
Is it possible for me personally to work and earn my 37k in the labour side of the business without being affected by vat and run the company with the sales product as 2 different identities. I would like to register the sales company with a seperate name and website and register it for vat. Can i run it and not take anything from it until it was making a good profit or does this count as part of my 37k turnover and force me to register everything as one business.
If i have to pay vat on my labour i dont think it will be worth it. i wont earn the 37k this year on just labour.
Hope someone may have an answer And i am really grateful for any replys.

i dont have the figures to hand but i think there is a different limit if the business is service againest retail depending on the % break-up but i imagine that as said above sole trader is either vat registered or not

Niamh.W

If they are 2 independent companies where it just happened that you are the owner/CEO of both of them, it's not a problem. If you're a sole trader than its a different story.