General help please for VAT

[stevedawson54@hotmail.com]

Just taken over a business that has 3 sectors 1. Retail/shop sales for Dry Cleaning and Laundry 2. Sewing work and 3. Invoiced work for hotels and insurance companies. The total gross sales for the business is circa £73,000 and is borderline for VAT registration. The previous owner lumped all the sales in as one and paid VAT accordingly on the lot.

I think that what I want to do is to split the business into commercial and retail work - the Ltd company (commercial) to be registered for VAT for all hotel and insurance claim work.

The shop, which is cash sales to be part of a self employment status not charge VAT ( Sales amount to £50,000 in this sector).

If I have 2 seperate bank accounts and indeed identities, one LTD for invoiced work and the other for cash sales can I do this ? and can I then only register one part of the business for VAt.

By doing this, apart from the paperwork aspect would save me £12,000 a year - any help or suggestions would be appreciated and a free dry clean would be offerred.

Regards

Steve