Originally posted by wizard1974uk
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Reply to: Should I become VAT reg ? Already Ltd
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Previously on "Should I become VAT reg ? Already Ltd"
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Thought the compulsory limit was more nearer 62k?
Edit: Just checked and its currently 61k.
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If you don't need to be VAT registered then you should consider :-
- If you're selling your services to other businesses who can reclaim the VAT, then you may as well register either on the standard or flat rate scheme because you can save some money.
-If you're selling your services to the general public (unlikely) or to non-profit's then you need to consider whether your increased charges will put them off. Some non-profits can't claim for all their input VAT.
Flat rate versus standard :-
You just need to do a calculation to figure out if you'd be better off being registered under the flat rate scheme or the standard scheme. Add up the VAT you've paid on goods and services you've bought in the year then compare it your VAT inclusive charges minus 13% minus your VAT-exclusive charges. If the second figure is more (on £50k it's £1,112.50), then you will be better off financially under the flat rate scheme. It's also easier to administer because you just pay a fixed percentage of your VAT-inclusive income. On a £50k income you'd have to spend about £7k on VATable items to make the standard scheme worthwhile.
In my opinion...
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Originally posted by Number9I been Ltd for the last 10 months, but I'm not Vat registered !
What are the advantages and disavantages of being VAT reg ?
I hope to invoice around 50k for this year and that will be only for my services.
http://customs.hmrc.gov.uk/channelsP...ument#P22_1118
£50K per year is below the limit for compulsory registration, however, there are reasons for being VAT registered regardless because the VAT on expenditure can be reclaimed or a little extra cash can be made from the flat rate scheme.
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Should I become VAT reg ? Already Ltd
I been Ltd for the last 10 months, but I'm not Vat registered !
What are the advantages and disavantages of being VAT reg ?
I hope to invoice around 50k for this year and that will be only for my services.Tags: None
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