I own a small service for TV repairs. Last year in the end of the fiscal year due to not being attentive enough I exceeded the threshold of $61000 so I had to register for VAT and I started to include VAT in every invoice. I’m thinking about the business separation, actually I’d found another service for my son and thus I’d make my annual income less. What do you think about that?
That is a good idea and I really hope you’ll succeed in that. Personally, I don’t think this move is fair. A lot of big companies do this and instead of one gigantic company there are a lot of smaller ones with annual income that doesn’t exceed $60000. That’s definitely unfair competition. But your case is quite different. You probably exceeded this amount only a bit and now your every repair cost a client more and they might give up from your service and go to your competition which isn’t in VAT. That’s why I support your idea completely. You must be aware that these separations can be punished as a fight against VAT avoiding.
