Artificial Seperation - HMRC

[madmover]

Just wondering if anyone has been through this minefield. We want to offer a new service to existing customers which we used to offer.
Company in question is VAT exempt
New activity is vatable activity and would likely hit the threshold

I proposed starting a new Ltd company for the exclusive provision of this service which is different to everything else which we do. Apparently this shouldn't be done as it's artificial separation can someonssdbise on their experience on this?

Best wishes

Andy

[PurpleMoonlight]

Is the exiting company VAT exempt by turnover or because the services/products are exempt or zero VAT rated?

[Sebring440]

madmover said:

We want to offer a new service to existing customers which we used to offer.
Company in question is VAT exempt

You do realise that this is the Books and Literature section and not the Business section?