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Posted Wed, 10 Jul 2024 11:57:33 GMT by Luke
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!
Posted Thu, 11 Jul 2024 10:57:24 GMT by HMRC Admin 8 Response
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

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