Considering going VAT registered.

[mark_s]

I've been vat registered in the past with a business that was turning over around 300K a year and never had any issues with being registered. My new business turns over no where close to this, in fact turnover has been about 25k in the last couple of years. The reason I'm considering it is because all my clients are large businesses who initially assume I am VAT registered and it doesn't reflect well that I'm not turning over a larger amount. I've just picked up a couple of new clients who have again assumed I'm registered so for this reason I'm thinking of registering before I do work for them and invoice them.

I'm also in a situation where I hire vehicles, pay for fuel and buy stock for my work, all of which I'm charged VAT on so I'm thinking I might be better off as I would be able to claim most of this VAT back.

Any advice would be appreciated

 

[JEREMY HAWKE]

If your cost are high then it would be a benefit
Even the smallest van owner driver that we use sometimes is vat registered

The reality is with your experience you probably already know the best route

 

[KAC]

I've been vat registered in the past with a business that was turning over around 300K a year and never had any issues with being registered. My new business turns over no where close to this, in fact turnover has been about 25k in the last couple of years. The reason I'm considering it is because all my clients are large businesses who initially assume I am VAT registered and it doesn't reflect well that I'm not turning over a larger amount. I've just picked up a couple of new clients who have again assumed I'm registered so for this reason I'm thinking of registering before I do work for them and invoice them.

I'm also in a situation where I hire vehicles, pay for fuel and buy stock for my work, all of which I'm charged VAT on so I'm thinking I might be better off as I would be able to claim most of this VAT back.

Any advice would be appreciated

You don't indicate the nature of your business. It may be sensible for you to look at the flat-rate scheme which simplifies record keeping https://www.gov.uk/vat-flat-rate-scheme. If you have an accountant, they can work out the benefits if any

 

[Deleted member 335660]

Yes Mark, I would register.

You have had companies who expect you to be VAT registered and they would then expect to get the VAT off the cost, so they may be disappointed.

 

[MyAccountantOnline]

I've been vat registered in the past with a business that was turning over around 300K a year and never had any issues with being registered. My new business turns over no where close to this, in fact turnover has been about 25k in the last couple of years. The reason I'm considering it is because all my clients are large businesses who initially assume I am VAT registered and it doesn't reflect well that I'm not turning over a larger amount. I've just picked up a couple of new clients who have again assumed I'm registered so for this reason I'm thinking of registering before I do work for them and invoice them.

I'm also in a situation where I hire vehicles, pay for fuel and buy stock for my work, all of which I'm charged VAT on so I'm thinking I might be better off as I would be able to claim most of this VAT back.

Any advice would be appreciated

If you can add VAT to what you are charging now I see no disadvantage to registering for VAT.

 

[nelioneil]

Honestly if the businesses are turning up their nose because your business is not vat registered, they are probably not good clients!

 

[STDFR33]

Check your contracts.

I once had a client register for VAT off his own back thinking he could simply add it on to their clients. It turned out his contracts all said inclusive of any VAT and it then became a cost to him.

If your contract is silent on VAT, then it shouldn't be a problem.

 

[mark_s]

Cheers for the advice. I contacted my clients asking if it would be an an issue and all replied saying not a problem as they can claim it back anyway so its all good!

 

[Perbinder]

I was in the same position and I elected to become VAT registered early. I am able to claim VAT back which all adds up. My clients are all VAT registered so never been an issue.

 

[Scubadog]

Honestly if the businesses are turning up their nose because your business is not vat registered, they are probably not good clients!

Actually....these are exactly the sort if customers I would target.
They are likely high valued customers willing to spend larger amounts of money than most.

 

[paulears]

If your clients are vat registered, it’s efficient for you to be too. It’s only when you deal with consumers it’s a pain.

 

[lesvatadvice]

do advise your clients that, from a particular date, you will be charging VAT. Use this as a promotional opportunity. Thank customers for their support, etc.
And, identify VAT input tax incurred from before you are registered which you are entitled to claim. HMRC notice 700, chapter 11 refers.

 

[mark_s]

Ok so it seems there aren't really any downsides to registering. I probably would have done it by now if the link on the HMRC website worked but seems to have been down for at least a month. Guess I'll just have to give them a call on Monday and try do it that way.

 

[theogeo]

I guess this means you can claim back VAT on all goods from the last 4 years of trading?

 

[DWS]

I guess this means you can claim back VAT on all goods from the last 4 years of trading?

If you still have them at the time of registration then yes

 

[mark_s]

If you still have them at the time of registration then yes

But would you not need to have been charging VAT in those 4 years?

 

[theogeo]

But would you not need to have been charging VAT in those 4 years?

Nope.

Register for VAT

How to register for VAT, change your details, cancel your registration, register for VAT in EU countries.

www.gov.uk

 

[mark_s]

Well i never knew that, could have a few grand I could possibly claim back!