When first setting up your business, there are multiple decisions to make and a key consideration will be whether to register the business for Value-Added Tax (VAT), the tax that’s added onto the price of certain goods and services.
When does VAT registration become mandatory?
Is it better to be VAT-registered?
You can add VAT to your selling price without it costing your customer more VAT registered customers simply claim back the VAT from HMRC. You can also reclaim VAT on your own purchases and expenses in the same way. There is the option of the flat-rate scheme for a more straightforward alternative, which we can advise on.
What happens if my customers aren’t VAT registered?
If you are below the £85k threshold and have a choice on VAT registration, consider the impact on reclaiming the VAT on your purchases and weigh up the balance of this. We can assess this impact and provide an appraisal and forecasts as necessary.
Why would I register early for VAT?
There is sometimes a perception about a VAT registered business appearing more substantial and professional. And of course, there may be the opportunity to claim back some VAT on purchases, particularly if these are for significant assets. Talk to us before making a voluntary VAT Registration decision, as sometimes these could lead to consequences elsewhere.
Talk to us about registering for VAT
For a complimentary Discovery Call to discuss the most appropriate level of support, a personalised quote and a guarantee of our best possible service, please complete the form below and one of our senior advisors will contact you.
Or if you prefer, please call 01296 681341 for our Wingrave Bucks Accountants office.
