As a newbie to contracting and to this site, apologies if my question has been covered elsewhere but i would appreciate a little help.
I have not yet set up an accountant as my accounts are likely to be very basic as i only have minimal transactions.
I have therefore not yet registered for VAT as i am not expecting my turnover to be greater than the threshold.
However from reading online it seems that it may still benefit me to be VAT registered on the flat rate scheme.
From my understanding i shall charge my client 20% VAT but only pay HMRC 14.5%. Sounds good to me, but surely theres got to be a catch.
Please can someone elaborate on whether it is a good idea for me to register for VAT?
Thanks in advance.
I have not yet set up an accountant as my accounts are likely to be very basic as i only have minimal transactions.
I have therefore not yet registered for VAT as i am not expecting my turnover to be greater than the threshold.
However from reading online it seems that it may still benefit me to be VAT registered on the flat rate scheme.
From my understanding i shall charge my client 20% VAT but only pay HMRC 14.5%. Sounds good to me, but surely theres got to be a catch.
Please can someone elaborate on whether it is a good idea for me to register for VAT?
Thanks in advance.
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