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RJM Law
RJM Law, Lawyer
Category: Law
Satisfied Customers: 3484
Experience:  LL.B (Hons)
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My client runs a nursery which will have a gift shop and

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My client runs a nursery which will have a gift shop and cafe attached. The cafe and gift shop are registered as a limited company. What I would like to confirm is that the nursery can come under the ltd company too? The company is VAT registered but the nursery can't charge VAT on childcare. Would this still be allowed even though other aspects of my business are not VAT exempt?
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Customer: replied 19 days ago.
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Thank you.

Thank you for the question.  This is possible, it would simply mean that some of the services are not liable to have VAT paid on them and other's would, obviously this would require to be outlined in your tax bill.   However, with that being said it would be wise to consider the advantages of having 2 separate limited companies in this case.  Firstly, if the shop etc, is attached to the other business then you are going to hit the VAT. threshold quickly meaning that you missing out on a lot of VAT free sales which  you would get if the shop was held as a separate company, also you can mitigate some of the corporation tax or even have the nursery charge rent, to mitigate costs.  This is only a few examples of how it can be advisable obviously you would be best to speak with your accountant to as they will have full knowledge of what would be best.

I hope this information proved helpful.  You will find a local solicitor who deals with these matters on the law society webpage which is as follows;

https://solicitors.lawsociety.org.uk/ (England)

https://www.lawscot.org.uk/find-a-solicitor/ (Scotland)

https://www.lawsociety.ie/Find-a-Solicitor/Solicitor-Firm-Search/ (Ireland)

Hopefully, I have answered your query in a way that is simple and easy to understand. If anything remains unclear, I will be more than happy to clarify it for you. In the meantime, thank you once again for using our services.

Should you require any further assistance on this matter, please do not hesitate to post a further questions for additional assistance.

Kindest Regards.

RJM Law, Lawyer
Category: Law
Satisfied Customers: 3484
Experience: LL.B (Hons)
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Customer: replied 17 days ago.
Thank you very much - I thought that was the case but just needed to get confirmation for the client.
Customer: replied 17 days ago.
I may come back to you with similar problems within the next few weeks do you have any area specialities?

My main area is Employment Law but have worked in several other areas of law.  If you have any questions in the future you can post them for my attention.  Thank you and I wish you the best.