19th June 2009, 05:36 PM
The reasons for being VAT registered below the threshold is that everything you buy for the business is 15% cheaper (except books etc)
The reasons for not registering is that you are 15% cheaper when you are working for somebody or an organisation that is also not registered compared to somebody who is. VAT rules require books to be kept and a form sent in quarterly (although there are annual schemes) with the net VAT owed.
It is a straight forward commercial decision until you reach the threshold.
If you are VAT registered some people will want to pay you cash and thus avoid paying VAT which of course you cant do.
Please get professional advice on this matter or contact HMRC and discuss this with them.
Peter
The reasons for not registering is that you are 15% cheaper when you are working for somebody or an organisation that is also not registered compared to somebody who is. VAT rules require books to be kept and a form sent in quarterly (although there are annual schemes) with the net VAT owed.
It is a straight forward commercial decision until you reach the threshold.
If you are VAT registered some people will want to pay you cash and thus avoid paying VAT which of course you cant do.
Please get professional advice on this matter or contact HMRC and discuss this with them.
Peter