Originally Posted by
BigEndBob
I was thinking of splitting the club into two businesses to get below the vat threshold.
One would be hire and the other training.
Possibly a tricky one. Which business would own the aircraft? One each? If you only used aircraft 1 for training and aircraft 2 for hire, that might work. Otherwise Company 1 would need to rent the aircraft owned by company 2 or vv at times. Not sure what HMRC would say......
Having said that, I know one company that does operate as two entities to avoid charging VAT. Not in aviation though. I also know another that did this for some years, and then HMRC came along and fined him £15k for avoiding payment if VAT. Again, not aviation.