VAT advice

[dottylou]

Hi

My company isn't VAT registered - I don't earn up to the threshold required, but wondering should I still register anyway?

Any advice would be helpful.
thank you

 

[MyAccountantOnline]

Hi

My company isn't VAT registered - I don't earn up to the threshold required, but wondering should I still register anyway?

Any advice would be helpful.
thank you

Does your company sell to VAT registered businesses or private individuals?

 

[dottylou]

Both really. Our clients are a mix of small business owners to medium sized companies

 

[MyAccountantOnline]

Both really. Our clients are a mix of small business owners to medium sized companies

Generally if you sell to other VAT registered businesses you add VAT to your sales prices without effecting your profit margin, and you then benefit from voluntary VAT registration by being able to claim VAT back on your costs.

If you sell to the public/non-VAT registered businesses you have to be careful that you dont price yourself out of the market by adding VAT or reduce your profit margins by absorbing the VAT.

It will really depend on your mix of sales/customers and the type of business you operate.

It would be a question best put to your own accountant who will be aware of your personal circumstances.