Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Single Entity and Disaggregation

From
HM Revenue & Customs
Updated
, see all updates

Single Entity: related parties

The fact that the various parties are related should not influence your decision. Tribunal decisions have indicated that a wife can quite feasibly help her husband in his business (in her capacity as his wife) and still carry on her own business (in her capacity as a sole proprietor). You should ask each individual to define the distinction between what they do in their business capacity and what they do to help out as a family member. There are summaries of a number of cases involving husband and wife in VATDSAG08000.