MTD & VAT 2 separate self-employments 5/8 Q2

Support
1

Hello. I have a client who has been s/e, vat registered and using QF for some time now. She has recently set up another separate s/e business. How does this work with QF. I understand that it’s best to set up a separate QF account, but both businesses have the same VAT number. How does that work when submitting VAT returns? Thank you

2

I have had no need to do this myself, but I believe that what you should be doing is setting up two different trading styles.

https://support.quickfile.co.uk/t/custom-trading-styles/8831

3

Thank you, I didn’t know about this feature but it won’t solve my problem. I have to keep the self-employments separate to establish separate profits/losses. I imagine I will have to use the project tabs.

4

Hello @SharronY

As both businesses are operated by the same sole trader under the same VAT registration, the same VAT number covers both businesses. HMRC requires one combined VAT return covering all of the individual’s business activities.

We would recommend creating a separate QuickFile account for the second business, particularly because each trade will need its own Self Employment Cumulative Updates for MTD Income Tax.

For each VAT period:

  1. Prepare the VAT return in the second QuickFile account, which should not be connected to HMRC for VAT.
  2. Take the figures from that VAT return and add them to the VAT return in the main QuickFile account using VAT adjustments.
  3. Save the VAT return in the second QuickFile account. As this account is not connected to HMRC for VAT, the return will not be submitted to HMRC and will only be stored within QuickFile to close and lock the VAT period.
  4. Submit the combined VAT return to HMRC from the main QuickFile account connected to the VAT registration.

Only one combined VAT return is submitted to HMRC.