VAT Registration

[Diestl]

I think accountants can chase it up and get it quicker (2 weeks).

[marcus2704]

Im below the 60k VAT threshold at the moment, is there any reason I would benefit in applying for VAT registration? What are the ad\disadvantages of VAT registering my Ltd?

[Back In Business]

When did you register?

December, did it myself online.

[Back In Business]

Im below the 60k VAT threshold at the moment, is there any reason I would benefit in applying for VAT registration? What are the ad\disadvantages of VAT registering my Ltd?

You can claim back VAT off business purchases and you make a bit on VAT paid to you if you use the flat rate scheme. IMO it looks more professional and people treat you like a supplier and not an employee.

[marcus2704]

Ive a few contractor buddies who strongly advised me against this, stating that it puts me under the watchful eye of the inspectors more so than were I not VAT registered. I rarely make purchases through my business other than travel (so far), but wouldnt want to catch the attention of the IR if there is little financial benefit to me. My friends stories of people being 'done over' after becoming VAT registered have got me a little spooked I must admit, even if (as I suspect) they have managed their financial affairs somewhat 'creatively'

[DaveB]

Ive a few contractor buddies who strongly advised me against this, stating that it puts me under the watchful eye of the inspectors more so than were I not VAT registered. I rarely make purchases through my business other than travel (so far), but wouldnt want to catch the attention of the IR if there is little financial benefit to me. My friends stories of people being 'done over' after becoming VAT registered have got me a little spooked I must admit, even if (as I suspect) they have managed their financial affairs somewhat 'creatively'

If you dont try and screw the system then there is no reason not to be VAT registered. It makes you look like a proper business, clients and agents expect it anyway and the FRS will save you money in the long run.

It's easy enough to do the VAT calculations or just get your accountant to do it for you.

Not being registered will cause you more potential problems in the long run. If HMRC decide you might be over the VAT limit and not declaring/registering it, then they will come after you. If you are VAT registered then the problem doesn't arise.

Do not, under any circumstances, try to get one over on the VAT man. The IR might be willing to negotiate and take things into consideration, the VAT won't and they get very upset when people try it.