VAT registration – should I?

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

Posted under Courier Financial Issues, VAT

Posted by Alec at 4:26 pm, June 26, 2008

3 Comments so far

  1. Alec added on  June 26th, 2008 at 17:02

    someone wrote:
    One minor point, the vat man will expect paying even if you have ceased trading and you are sitting on the dole.

    The only way to protect personal assets is to go Ltd at the same time.

    We got into difficulties last year and the “late payment of commercial invoices” legislation looks positivly benign.

    Its something like 5% then 10% up to 30% surcharge.

    I am registered via a limited company & I don’t get any sleepless nights

    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).

  2. Alec added on  June 26th, 2008 at 19:07

    PH wrote:
    Yeah, went VAT reg. too, businesses don’t mind as most are vat registered, its the private punters whose jaw hit the floor when you say plus vat!!

    To be fair though their jaws hit the floor if you say anything other that £5.99.

  3. Alec added on  June 26th, 2008 at 22:40

    someone wrote:

    I claim mileage allowance on one van and a 4×4 as oppossed to renting to the LTd company
    Not sure if the tax man would wear it if you did this as a sole trader but I may be wrong

    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’.

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