VAT advice anybody? Is splitting a business to avoid VAT allowed?

[MoosMa]

Our business is nearly at the VAT limit so we've been advised by a few people (not accountants) to split the business in 2 from April as we do 2 very different things under on name at the moment.

Someone's mentioned (on another thread on here) that this might be an outdated idea and gave me the impression that it might not be legit.

So, is it do-able and is it allowed?

I am aware of that but in the end they are likely to go over the threshold, so they either have to jump in and register and let the customers know a while in advance (a month or so maybe)OR hit the customers with the extra charge with no notice. Unless the business is in an unusual high turnover phase it really will only be a matter of time. I don't think people realise it's a rolling 12 month basis NOT the accounting year, at least my clients don't.

I am SURE most people don't realise it is rolling, you just have to do your best to try and make them realise if they are getting anywhere near when you are doing the accounts (clients!).
I guess the increasing income depends on the rate of increase - if it is just small due to inflation then probably ok, but if actually growing then yes they would exceed sooner or later.
Do you know the rate from April?

not a clue was on ml until just before christmas and then buried under tax return mountains so no time to read up on anything!

lol, I've been back nearly a year, so don't have the ML excuse - but don't do alot with VAT. Just had an "ekk is she my colleague" moment until I looked at your profile. Which is daft as there must be loads of accountants returning from ML every month!

lol i don't do much with VAT either but I ought to know the limits to make sure clients aren't over them!