Taxi Driver Online

I wonder if you know what you are talking about!

For instance a few years ago my then wife and I split up. we were buying the house between us (joint mortgage) I met and married another woman. She bought the house off of my ex and me. Due to the demands of the CSA and various other creditors I declared myself bankrupt. My wife did not loose the house. If I want to run my limousine business as a seperate business from the taxi business then providing there is no link between the 2 I can run one as a sole trader and the other in partnership with the wife or anyone else for that matter and the 2 will remain seperate for all tax issues including VAT. I can even split my personal tax allowance between the 2 if I want. But the 2 businesses must be run completely seperate as I have previously stated.

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Grandad,

Grandad wrote:



As I said if the directors are common, the phone number is the same, you rent the same property to run the busisness from and you use the same staff then this will be suspect and liable for investigation as artificial seperation.

Nobody said you could not ddddddoooooooo this and I think most of understand you can split your personal allowance, so think about it, the same applied to the vat, the missus may no have to be vat registered the partnership may not have to be vat registered, but the percentage of turnover that belongs to your part of the partnership will attract vat if this figure combined with your sole proprietor status business goes over the threshold when combined together.

I think it is you who that does understand not me, and I quote, a few years ago, things have changed, not the regs and the laws, but the interpretation of them and the enforcement of them.

I do have a problem with people wrongly advising others on this forum, especially when they could be breaking the Law, which is VERY CLEAR which is why I step in and try to clarify it.

I only know as much about the HM customs and exise as i do because two close friends got caught doing what you are suggesting and did time for it.

Both also went bankrupt had to and signed their houses over to the wife, and guess what both wives were not there for them when they had finished their sentences, each with 100% of the house in their names. Yes both had to remorgage to pay their own liability percentage to the partnership creditors. At that time 100% for VAT, changed slightly now though April 2004, VAT has to agree to the same % as all other creditors. but that comes with its own problems with regards to tax as I am sure you will understand.

You guys may be thinking What bitches, but when you understand both wives had no idea what these guys were doing or why, were roped in on false pretences, had kids to consider and almost did a streach themselves as a result you can sort of understand why they were a bit bitter.

So the moral of stories, do not screw your business partner, even if is just the misus.

Regards

Eric

"Both also went bankrupt had to and signed their houses over to the wife, and guess what both wives were not there for them when they had finished their sentences, each with 100% of the house in their names. Yes both had to remorgage to pay their own liability percentage to the partnership creditors. At that time 100% for VAT, changed slightly now though April 2004, VAT has to agree to the same % as all other creditors. but that comes with its own problems with regards to tax as I am sure you will understand."

This statement makes no sense at all. Both went bankrupt and signed their houses over to their wives. Thats fine but then how could they then remortgage to pay their creditors?

Are you sure that this is what they did, Remortgage a house they did not own, come on it's a bit early in the year for cuckoos.

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Grandad,

If you look at my first post the only advice I gave was to ask your accountant.

I later explained how people can and do avoid regeristing for VAT, it is up to each individual to decide how they manage their tax affairs

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Why don't you get a proper job???

Absolutly, I certainly wouldn't advise anyone to go along a particular route without first seeing a proffesional advisor. Myself, when I went VAT registered I asked the Vat man to come round and advise me. You would be surprised at how helpful they can be if you ask.

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Grandad,

Grandad wrote:



Quite precisely my point. No dodgy accountants please!!

Regards Eric

and use the cash accounting system (only paying the vat paid to you on invoices paid) if using vat regd and doing account work, otherwise you can end up paying the vat out long before you get paid.

personally im about to de-register after 6 years on vat, but that was in the haulage game, where almost all work is invoiced, and on 60 day terms.

if using vat regd subbies or hired vehicles it works, if not id leave HMRC out of it

i asked HMRC if two buisnesses could be run, 1 vat regd and 1 not, they said if there was any connection in ownership, type of business or any other then if 1 was vat regd both were - and i suggest you dont mess with mr vatman!