Advice Needed - VAT threshold breached!

[speedo]

I'd guess none, on the face of it it's simple.
One person resigns as Director, sells their shares to the remaining Director for a nominal fee (probably best to ask your accountants how much that should be) and then isn't part of the business.
There's nothing to stop that person setting up a new MyCo Ltd with VAT registration, bank accounts etc in advance.

Taken from the HMRC site:
Who can't join the Flat Rate Scheme
You can't join the Flat Rate Scheme if:

you were in the scheme and left during the previous 12 months
you are, or have been within the previous 24 months
eligible to join an existing VAT group
registered for VAT as a division of a larger business

I guess it comes down to HRMC proving the above....

[TykeMerc]

So we were on the Flat rate scheme - but had to move off that to the standard rate due to our turnover being greater than 150k.

If we work under seperate ltd companies we would both fit into the Flat rate scheme... so the question was what are the implications if any, if one of us started a new ltd company and wanted to register for the Flat rate scheme....

I'd guess none, on the face of it it's simple.
One person resigns as Director, sells their shares to the remaining Director for a nominal fee (probably best to ask your accountants how much that should be) and then isn't part of the business.
There's nothing to stop that person setting up a new MyCo Ltd with VAT registration, bank accounts etc in advance.

[Danielsjdaccountancy]

I think if you relinquish your share at the end of the contract and then start a new Limited company on your own then there should be no issue as this would be a valid point to start on your own.

[VectraMan]

There's something about "related" companies making you ineligible, but you'll have to check what "related" actually means. I remember I was concerned about being a shareholder of another VAT registered company, but in the end it didn't apply.

[speedo]

It's not clear which threshold you mean, the threshold for VAT registration or for staying in the Flat Rate scheme?

So we were on the Flat rate scheme - but had to move off that to the standard rate due to our turnover being greater than 150k.

If we work under seperate ltd companies we would both fit into the Flat rate scheme... so the question was what are the implications if any, if one of us started a new ltd company and wanted to register for the Flat rate scheme....

[Wanderer]

It's not clear which threshold you mean, the threshold for VAT registration or for staying in the Flat Rate scheme?

[speedo]

There are 2 of us working at 50% under one ltd company, and recently we have been asked to move of the VAT scheme, i.e. what we charge is paid back each quarter (we hit the turnover threshold).

What are the consequences if one of us divests our shares with the ltd company and started to bill under a new ltd company? Will there be a problem setting up a new company and registering for VAT?

Any help would be appreciated.

Thanks in advance!