Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum : Sources of income

19 April 2016
Issue: 4546 / Categories: Forum & Feedback

The VAT liabilities arising on income from a livery and bed and breakfast.

I have a client who is a limited company with three sources of income: bed and breakfast for short-term guests; marquee hire for weddings; and livery services. The client’s total income is now approaching the VAT registration threshold. We would like to avoid registering if possible because all of her customers are B2C and she has little input tax to claim. There seem to be two ways to avert the problem.

First we understand that the livery income of about £20 000 a year is exempt from VAT so can be ignored – but is this actually the case? A friend of my client referred to the ‘Windows’ case as being the relevant case law to quote to HMRC.

Second is there scope to transfer the bed-and-breakfast activity into a partnership with her husband or a separate limited company on the basis that the two entities would each...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon