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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17814
Experience:  International tax
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Hi. Im a self-employed teacher and also run my own band that

Customer Question

Hi. I'm a self-employed teacher and also run my own band that has 8 members so our turnover is high although I only earn an eighth of the total. If I add my teaching income to our band income it pushes me into VAT territory. Am I allowed to separate these 2 income streams so that I am not required to pay VAT? The two businesses are totally separate and do not share equipment etc.
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
If you run more than one business, the sales in all those businesses must normally be added together to determine whether or not you must register for VAT.
One area I see with you would be if you are teaching in the musical field.
If you may be stepping over with the use of the same equipment.
If these are separate legal entities, you may not need to combine the sales of those businesses to find whether you need to be VAT-registered.
The two may not be combined or dependent on the other for survival as a business.
Each business must stand on it's own with income and services or products supplied.