Amazon & eBay Seller Accounts

Hi just looking for some advice on separation please 1x Amazon and 1x eBay account, both in sole trader name VAT registered under the FRS selling similar items. Amazon account is FBA (Fulfilled by Amazon) so everything is sold stored dispatched, and customer service provided by Amazon (Items shipped in bulk to Amazon warehouse once every month ) eBay everything stored in house, and shipped personally. Thinking of selling the eBay side of things sometime in the future, the only way to do that is for the eBay account to be a limited company and not a sole trader. If by registering a Ltd company for the eBay, with its own bank account, everything totally separate from the sole trader and also registering the LTD company for VAT from day 1 could this be seen as separated artificially ? It is not a scheme to avoid VAT as both will be registered, Amazon is a totally different business model to eBay, everything will be separated, and each business will not rely on one or another Please Advise Thank you

Hi,

Artificial separation could become relevant if you split the business artificially and you did this in order to avoid registration for the one entity or both entities. As both entities will be registered for VAT then there will be no avoidance of registration and of charging VAT. You can see the guidance below;

Statement of Practice 4 (1983)

Please make sure the conditions are still met however, to remain on the flat rate scheme. Please see below:

Eligibility and conditions of the scheme

Thank you.