Vat registered or not?

[egginyourface]

What are the benefits of going vat registered? Will it help attract more clients and get more business? or is it only for the big boys

 

[telectrix]

if your turnover is below the threshold, i would not register. threshold is around 60k/year. if i get a biggish job for a vat registered firm, i get them to buy materials, so they get the vat back. advantage is i don't have to stand out the cost of materials. disadvantage is i don't get a mark up on them. your choice, your decision.

 

[High Tower]

if you are doing mainly commercial, then its worth it, as commercial companys only look at the net value of a invoice as the vat is irrelevant as the claim it all back. but it does mean that you will be able to claim your own vat back.

If you do mainly domestic then its not such a good idea as you will have to put 20% on your prices to the householder

 

[roukel01]

If you do mainly domestic then its not such a good idea as you will have to put 20% on your prices to the householder

Not entirley true, The only difference between a VAT registered spark and one that isn't is that VAT will be charged on the Labour because a non-VAT registered spark will be buying their material plus VAT in the first place where a VAT registered spark will not.

 

[nickblake]

Think its one that will balance its self out ,having said that you do a £2000.00 job its another £400 quid if labour only so i must admit i do alot of commerical and domestic and not had a problem with not being vat regestered

 

[telectrix]

and you got all the hassle of filling in vat reurns every 3 months. huge fines if you're late. worse if you try ande fiddle it ( not that anyone does). my advice is don't unless you have to.