VAT registration

[littlesheep]

What are the pros / cons if you are below the threshold to have to be registered but opt to be?

Thanks

[Tanya]

totally O/T but just noticed that was your 1000th post!!!!!!

as for your question I don't know the answer

[Arianna]

Hi Elaine,

Well one of the cons is that if you sell more items than you purchase, you will owe HMRC money. :-) Also, with being registered for VAT, you need to file VAT returns every quarter etc so it does increase your paperwork and the information you need to keep in your books.

A huge pro is that if you buy more stock than you sell HMRC owe you money. LOL

You can claim vat on other types of purchases as well.

Atm that's all I can think off as I'm too tired to think. LOL

Arianna

[littlesheep]

totally O/T but just noticed that was your 1000th post!!!!!!

as for your question I don't know the answer

Oooh how exciting :D didn't realise I was getting close!

[littlesheep]

Hi Elaine,

Well one of the cons is that if you sell more items than you purchase, you will owe HMRC money. :-) Also, with being registered for VAT, you need to file VAT returns every quarter etc so it does increase your paperwork and the information you need to keep in your books.

A huge pro is that if you buy more stock than you sell HMRC owe you money. LOL

You can claim vat on other types of purchases as well.

Atm that's all I can think off as I'm too tired to think. LOL

Arianna

Thanks... I'll get up to date with what I'm currently doing then before I confuse issues :cheesy:

[babybiz]

For me one of the advantages was that being VAT registered opened doors with some suppliers that wouldn't have traded with me otherwise. Also with my start up costs the first few returns I got money back, then we sort of broke even now sob sob the VAT man is taking a BIGGG chunk from me but I have to register now so that's not an option.

Tashxx

[littlesheep]

For me one of the advantages was that being VAT registered opened doors with some suppliers that wouldn't have traded with me otherwise. Also with my start up costs the first few returns I got money back, then we sort of broke even now sob sob the VAT man is taking a BIGGG chunk from me but I have to register now so that's not an option.

Tashxx

The bad side of growth :cheesy: I think I'd be at the getting money back stage :clapping:

[naturalnursery]

You can claim the VAT back on lots of things that you purchase for the business - eg stationery, packaging supplies, courier costs (not Royal Mail as they don't charge), advertising etc - anything that you have paid out for the business and has a VAT element.

If your 1/4ly bill is below a certain amount (can't remember but reasonably high) you can opt for annual returns so not too much extra paperwork.

hth

Axx

[littlesheep]

You can claim the VAT back on lots of things that you purchase for the business - eg stationery, packaging supplies, courier costs (not Royal Mail as they don't charge), advertising etc - anything that you have paid out for the business and has a VAT element.

If your 1/4ly bill is below a certain amount (can't remember but reasonably high) you can opt for annual returns so not too much extra paperwork.

hth

Axx

Thanks - sounds like it's definitely worth looking into... must get my accounts up to date first!

[gentille_maman]

whenyou deal with big companies, they prefer businesses to be VAT registered as they can then clain VAT back. It also makes you look like your turnover is above the threshold.

[littlesheep]

whenyou deal with big companies, they prefer businesses to be VAT registered as they can then clain VAT back. It also makes you look like your turnover is above the threshold.
Thanks