My name is Paul and I am specialise in book keeping, accountancy and payroll for small businesses. It's great to be part of this network.
I have a client that has been trading for nearly 3 years, as a Ltd VAT registered company. They also setup another Ltd company, which is not registered for VAT as it is very much under the threshold and is a totally different activity. They are in the process of transferring fixed assets from the original company to the new company, as there has been a steady reduction in trade. If the trend continues, they are considering closing the original company, once fixed assets have been transferred to the non VAT company, possibly with a view of reopening the original company under a slightly different name.
Could you please advise if this is possible, the process and also the pitfalls of such a process? Also is it possible to have a group of companies that have different activities, for one to be registered for VAT and others within the group not to be registered for VAT?
Apologies for the amount of questions but your advice will be really useful, as I understand that this is a very complicated area.
