Sole Trader and one-man Limited Company: one or two VAT registrations?

Hello, I am a musician/composer and I have recently set up a Limited Company for a record label I have founded. My plan is to retain my own music copyrights outside the company and operate as a sole trader with these, and use the record label to release my music as well as that of others. When considered together (but not independently) these two enterprises are about to pass the VAT threshold. Will I need to apply for two separate VAT registrations (Sole Trader and Limited Company) or just one (for my Limited Company)? Thank you!

Hi,
If the two businesses as a Sole Trader and a Limited Company and clearly separate entities, then they would be treated as such and each have their own VAT registration threshold.
Guidance on registering for VAT can be read in notice 700/1here:
Who should register for VAT (VAT Notice 700/1)
The businesses may be looked at as one entity if HMRC feel they have been artificially separated to avoid VAT.
Guidance on when HMRC class businesses as a single entity can be read here:
VAT Single Entity and Disaggregation
Thankyou

Thank you for your reply! I'd like to keep my sole trade and company separate (it is possible that I would like to sell the company in the future so I want to keep the entities distinct). However, both are in the same industry and the company releases some music made by the sole trade through a typical label/artist contract so there is potentially a grey area. To err on the side of caution, would it be safest for me to VAT register my sole trade and my company individually?

Hi Luke,
If the entities are completely separate then you can treat them separately for VAT purposes.
However you do need to be very careful regarding potentially deemed artificial separation of entities.
Please see the guidance below:
Statement of Practice 4 (1983)
Thank you.