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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4807
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I have a client who organises/promotes events (concerts etc)

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I have a client who organises/promotes events (concerts etc) as well as providing/running a bar on the day of the event.

Would it be possible to split the business into 2 companies - 1 promoting the events and 1 providing the bar. Each of the businesses would be run by a separate director.

Would HMRC allow this?
Hello, I'm Keith and happy to help you with your question. There appears no objection to the proposal you suggest.

Two companies could be created. One could run events and the other provide bar services. There is no requirement for the companies to have separate directors though this may well reflect good governance.

It would be best if these companies started afresh and the old concerns ceased to trade and shut down
Customer: replied 3 years ago.

Hello Keith. One of the companies has just started and the event has been promoted but is due to take place in about 4-5 weeks time so only the promotional activity side has occurred.


A husband and wife run the business (one concentrating on promotion the other on the bar/security side).


My concern was really with regard to VAT as combined the income would breach £81k.

But it is the separate companies activities which would be considered in isolation for VAT registration. That is one of the reasons I suggested closing down the old system and creating the new. If, however, the event company has contracted for both activities in the absence of the second then if it goes over the 81K limit it will have to register in its own right and charge VAT on all activities.
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Customer: replied 3 years ago.

My client has only recently formed company 1 (well I formed it for them) and this will be their first event as a company (they had several events last year but that was as a sole trader).


I suppose the bar side that is something I would have to ask my client about.


Thanks you very much for your advice.

Pleased to be of assistance.

Please be so kind as to rate me before you leave the site.
Thank you for your support.
Customer: replied 3 years ago.

Not a problem. Have a great weekend.

You are too kind!