VAT - Optional Registration

TODAY WE ARE TALKING V.A.T - OPTIONAL REGISTRATION

🤢Groan, groan.🤢

Ok, first thing's first.

Because one thing is for sure - the whole VAT 'thing' can be murky and we want to be certain you are aware of THE RULES.

1. You must register for VAT if your Vatable turnover is above £85,000 in a 12 month rolling period.

2. If your Vatable turnover is below that - it's optional to register.

🤔🤔So, Should you register for VAT before you need to?

Hm, well, possibly, (says the Bossman) but...

It depends on whom you are selling to.

👩‍💻BUSINESS TO BUSINESS👨‍💻

Charging VAT isn't an issue as a business can claim it back anyway and you get to reclaim VAT on purchases.

🤵BUSINESS TO CONSUMERS🧓

Some questions to consider.

1. What would be the impact of charging an additional 20% to your consumers?

2. Would you pass the whole 20% cost onto the customer who cannot claim the VAT back?

3. Absorb some costs yourself?

Sure you might be able to claim back purchases but if your costs are low, that probably won’t offset the impact at the end of the sale.

✍️WHY MIGHT YOU REGISTER IF YOUR TURNOVER IS BELOW £85,000?✍️

Some business owners consider that it enhances their credibility, whilst other businesses won't do business with a non VAT registered business.

If you're not sure whether you should be VAT registered or would like to know if it could benefit your business to be - get in touch. ☎️📞