Commentary

V7.189 Disaggregation—introduction

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.189 Disaggregation—introduction

Part V7 Tax planning | Commentary

Disaggregation

V7.189 Disaggregation—introduction

Many clients have an interest in more than one business – and from a VAT perspective, a challenge can occur when one of these businesses is VAT registered, and the other is trading below the VAT registration threshold. If the business trading below the VAT limits is mainly dealing with members of the public (ie who are unable to reclaim any of the VAT they pay as input tax) then it is in the interests of the owners to avoid VAT registration if possible.

However, HMRC has extensive powers to direct that two or more businesses are

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