Sole Trader of Three Different Businesses. Can one business invoice the other?
- Thread starter Alwyn
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Brendan Burgess
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If you have Alwyn trading as Acme sausage makers
and Alwyn trading as Zebra butchers
it would be Alwyn invoicing Alwyn . No real point in it.
From a management accounting point of view, you should certainly account for this so that you understand the profitability of each.
But raising an actual vat invoice is not necessary and may lead you to believe that your turnover is higher than it is.
It might be worth doing though, if an employee of the butcher's gets a profit share and sending out arm's length invoices might be clearer than journal entries.
Why do you want to do it?
Is there some tax advantage? That you have losses forward in sausage manufacturing which can only be set against profits in the same trade?
and Alwyn trading as Zebra butchers
it would be Alwyn invoicing Alwyn . No real point in it.
From a management accounting point of view, you should certainly account for this so that you understand the profitability of each.
But raising an actual vat invoice is not necessary and may lead you to believe that your turnover is higher than it is.
It might be worth doing though, if an employee of the butcher's gets a profit share and sending out arm's length invoices might be clearer than journal entries.
Why do you want to do it?
Is there some tax advantage? That you have losses forward in sausage manufacturing which can only be set against profits in the same trade?