people with their own businessess.....

L

lynspop

Well-Known Member
Joined
7 September 2006
Messages
377
Location
scotland
www.trainingtails.moonfruit.com
I have a question regarding the pro's and con's of registering for VAT-
I am in the process of planning and about to start setting up my own very small company offering canine behavioural consultations and also possibly a training class, and I am wondering about the benefits (or not) of registering for VAT? ( i doubt I will make very much of this business in terms of profit). I will still be keeping on my current job 4 days a week (running a riding school), so am also wondering if it is worth considering becoming self employed so as to run both jobs together rather than be taxed heavily on the second job (which would be the behavioural work).
Any thoughts?
Am off to see a business advisor tomorrow, but just wondered what everyone thought about this!
 
If your turnover is less than £65k(-ish, check that) then you don't need to register for VAT.

Given that your business is unlikely to need much in the way of buying things in, it would be unlikely to be of benefit to you to register. You'd have to add VAT to everything, which would push your prices up. You'd also have one more 'person' to deal with and returns to make, etc.

Good luck with the new venture
grin.gif
 
Agreed, unless you have to make a substantial upfront investment in something, I wouldnt register. You pay money to the VAT man when your sales exceed your purchases. You get a refund if your purchases exceed your sales.

I would say steer well clear and only register when you absolutely have to!
 
If your T/O is less than the required minimum to have to register (I think it's £68K/annum currently), and unless you're selling a product with zero or 5% rating in which case you would find you don't have to spend a lot on VATable things eg newspaper advertising in order to reclaim VAT each quarter, then it's not worth your while registering as it'll cost you £££, and often HMRC will often not permit you to register for VAT on low turnover anyway.
 
thanks for your replies.
I very much doubt i will ever make enough to NEED to register, and this will be a part time venture initially anyway, but just wanted to make sure there wasnt any huge pro's for registering for VAT!
 
Nope none just lots of paperwork and the IR on yer back and fining you if you miss dates and deadlines! I think if you were buying and selling goods then yes it might be advantageous but not for a service.
 
You must log in or register to reply here.
Top