wrote:
I think visit to the accountant is needed here
If you go to the accountant and they tell you not to register then get another accountant.
The only reason to even consider not registering for VAT is if you have a lot of customers that aren’t VAT registered.
Read this http://deliver-it.biz/couriers/2008/03/should-i-be-vat-registered/
Posted under Courier Financial Issues, VAT
Posted by Alec at 4:26 pm, June 26, 2008
I think that if he’s unsure about registering for VAT then trading through a limited company might be a step too far for him.
The best way of avoiding that sort of problem is to put ALL the VAT element of every payment you receive into a dedicated savings account. Pay your VAT liabilities out of the account each quarter and just leave the balance in there gaining interest. At the end of the year you’ve got a nice lump sum to use towards your income tax liability (or to spend on beer, depending on how you manage your finances).
To be fair though their jaws hit the floor if you say anything other that £5.99.
No problems doing it as a sole trader as long as your turnover is beneath the VAT threshold – doesn’t matter whether you’re VAT registered or not, just that your turnover is less than the VAT threshold. Lots of £££ benefit for the people that others describe as ‘busy fools’.