Why The "Taxable Person"?
OnTax Dunfermline Accountant confirm that HMRC do not allow a person to artificially break their business up in sub-businesses, (or multiple "taxable persons") in order to avoid vat on what was a turnover that exceeded the vat threshold now being broken up into many sub-businesses whose individual turnover is less than the registration threshold.
Of course, HMRC will not allow this artificial dividing up, however OnTax Dunfermline Accountant advise you not to rule out opportunities for dividing your own business up, there are one or two cases where HMRC have approved of this and the effects are beneficial to the owner.
OnTax Dunfermline Accountant have seen examples of this, such as a joiner who had one vat registered business for his contracts and another none vat registered business for his private work, this arrangement existing so that he could be more competitive on his private work.
As long as this sub-division is carried out under HMRC's blessing, and yes, this is possible (!), there should be no issues.
Multiple Vat Registrations
There are few circumstances where more than one vat registration is required, however we do see them here at OnTax Dunfermline Accountant. A classic one would be where 2 tradesmen who used to work individually under their own vat registrations form a new business to work together on certain contracts whilst retaining their existing businesses.
In cases such as these, a separate vat registration is advised for the new venture. As long as HMRC are made aware of this through giving these details to them on the new ventures application form, then it is possible to have more than one vat registration at the same time.