Should I register for VAT?
We know that many businesses are scared of the ‘VAT’ word but it actually can be beneficial for many businesses to register.
If your turnover is more than £81,000 you have to be VAT registered but often it’s worth registering when you’re turnover is below this level.
If you work purely for VAT registered businesses, they should be happy for you to add VAT on to your invoices. You can then claim back all of the VAT on your purchases and other expenses.
If you don’t have many, or indeed any purchases or expenses, you can join the flat rate VAT scheme. On this scheme you would still charge 20% VAT to your customer but would pay a lower percentage to HMRC and therefore actually make money out of being VAT registered. This is extremely beneficial for business consultants or anyone providing a service to other VAT registered businesses.
Becoming VAT registered and submitting quarterly returns is a very straight forward process and if you’re still scared of that ‘VAT’ word we would of course be happy to help.
Well that’s all for now guys & gals.