My client has 3 shops that he runs in a partnership with his wife.

One shop is VAT registered and the other 2 are not.

Is there a any reason why I couldn't set each shop up as a department (so I get separate P&L Reports) and treat the transactions on the non registered shops as "Out of Scope" does not effect the VAT Return?

this would then make the figures look more realistic when sumbitting the VAT return.

Hi Annette,

That sounds fine to me!

Cheers

Annette,
Depending on how the three shop businesses are set up, HMRC could aggregate all three as normally it is the proprietor's who are VAT registered not the individual businesses.