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Non VAT registered

DanceSexyTutu

Active Member
Hi,

Currently deciding whether or not to register my new start up for VAT. The industry is within Recruitment and I was just wondering whether or not their is a stigma in dealing with companies who are not VAT registered?

I could go VAT registered but just concerned as to what happens if I do not turnover £60k in first year, what are the consequences if I have charged VAT to my customers?

Has anyone had any dealings with companies who are not VAT registered? Did you have any reservations prior to contracts being signed?
 

eric pisch

Distinguished Member
im not vat registered

a couple of ppl moaned about not being able to claim the vat back until i pointed out i would add the vat first :)

if your labour only it should be fine, if you supply equipment you should go vat registered

reduces the hassle and paperwork

if you buy alot of equipment you cant claim the vat back on it
 

spaceman763

Active Member
a couple of ppl moaned about not being able to claim the vat back until i pointed out i would add the vat first :)

:rotfl::rotfl:

@DanceSexyTutu: It's most probably not worth registering for VAT straight up, unless you are planning on making losses in the first few months of trading or you are selling goods and services that are zero or nil rated.
 
VAT just gives you an aura of legitamacy, more so in sectors such as yours.

Personally its more hassell than its worth for you at the moment, you would roughly need circa 70k turnover to justify registering for VAT imho.

Try operating without it, if you find it necessary then register.

Sid
 
D

Deleted member 30535

Guest
I went for VAT registered and Ltd company. The LTD company should be more tax efficient for me, according to my accountant. Both give an impression of legitimacy and professionalism. Real world experiences may dictate otherwise!

I use Quickbooks for all my accounts and I have found the handling of VAT on both purchases and sales to be straightforward. My 1st qtr VAT return was vetted by the accountant and there was only one minor change: I couldn't re-claim VAT on client entertaining. But that amounted to only £50 anyway. So VAT management and reporting, providing you have the right software, can be a painless decision, even if you are under the mandatory threshold for VAT.
 

Ian J

Banned
I could go VAT registered but just concerned as to what happens if I do not turnover £60k in first year, what are the consequences if I have charged VAT to my customers?

There are no consequences. If you are Vat registered you have to charge Vat on your invoices to customers even if your turnover is well below the limit
 

signs

Banned
If you are spending out quite a bit on set up ie computers etc if you go registered from the start you can claim this back :)
 

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