Sorry! Another VAT question

[Pauly08]

This I hope is a quick one though!

If I'm selling my services B2B, i.e not buying something physical to sell on, just my time. Is there any real disadvantage to my customer if I'm not VAT registered? I asume I just charge them without VAT. Is it as simple as that?

Many thanks

 

[Maslins]

Yeah, no real disadvantage to them.

Might be an advantage to you to register though, for 2 reasons:

1) you get the improved cashflow of being able to hold the VAT for a few months, and

2) you may be able to join the flat rate scheme and pocket some of the VAT forever.

 

[MyAccountantOnline]

If I'm selling my services B2B, i.e not buying something physical to sell on, just my time. Is there any real disadvantage to my customer if I'm not VAT registered? I asume I just charge them without VAT. Is it as simple as that?

Many thanks

No disadvantage to your customer if you dont charge VAT. Assuming your turnover is below the VAT threshold and you dont make a voluntary registration you cant/musnt charge VAT.

It might be worthwhile you registering though to enable you to reclaim VAT on your costs.

 

[Pauly08]

Thanks Chris, you're a star. What is this flat rate scheme you speak of? I guess I can read about that on the official VAT site as I imagine the explanation wont be a simple one lol!

 

[Pauly08]

Thanks too Nicola

 

[MyAccountantOnline]

Sorry to jump in - but here's some info on the VAT flat rate

http://www.hjcca.co.uk/resources/tax_zone/tax_helpsheets/helpsheet.php?hsType=1&hsId=18

 

[Pauly08]

Sorry to jump in - but here's some info on the VAT flat rate

http://www.hjcca.co.uk/resources/tax_zone/tax_helpsheets/helpsheet.php?hsType=1&hsId=18

Fantastic, thank you both.