| Quick straw poll... 13:02 - Jun 30 with 2648 views | hoppy |
Voluntary registration for VAT...
Is this considered a good or essential move, especially dealing with other businesses, or does it not make much difference to not be registered?
Presumably, the perception of the company is better to be registered? |  |
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| Quick straw poll... on 13:06 - Jun 30 with 2631 views | LeBlue |
Except you have to charge your customers 20% more, which may price you above others. |  | | |
| Quick straw poll... on 13:07 - Jun 30 with 2629 views | tractorboy7777 |
Really depends on your target market/industry. If it's Joe Bloggs down the road, doesn't make sense to register as like mentioned above, you could charge less being non VAT registered.
If your sales would be zero rated then yes, would make a lot of sense to register. [Post edited 30 Jun 2017 13:08]
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| Quick straw poll... on 13:16 - Jun 30 with 2603 views | hoppy |
| Quick straw poll... on 13:07 - Jun 30 by tractorboy7777 |
Really depends on your target market/industry. If it's Joe Bloggs down the road, doesn't make sense to register as like mentioned above, you could charge less being non VAT registered.
If your sales would be zero rated then yes, would make a lot of sense to register. [Post edited 30 Jun 2017 13:08]
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As a graphic designer, mainly designing brochures, leaflets, branding with related promotional collateral - mostly to businesses. Existing clients have always had invoices from us paying vat, but with a change of name on the invoice, I'm weighing up whether it would set alarm bells for them if suddenly vat wasn't charged, if the perception would be that I couldn't do their work.
But it's new business that I'm wondering whether it could be more attractive to get the work if it meant they'd be charged a bit less - but larger companies are probably likely to be registered themselves and so not particularly bothered, aren't they? [Post edited 30 Jun 2017 13:16]
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| Quick straw poll... on 13:23 - Jun 30 with 2576 views | tractorboy7777 |
| Quick straw poll... on 13:16 - Jun 30 by hoppy |
As a graphic designer, mainly designing brochures, leaflets, branding with related promotional collateral - mostly to businesses. Existing clients have always had invoices from us paying vat, but with a change of name on the invoice, I'm weighing up whether it would set alarm bells for them if suddenly vat wasn't charged, if the perception would be that I couldn't do their work.
But it's new business that I'm wondering whether it could be more attractive to get the work if it meant they'd be charged a bit less - but larger companies are probably likely to be registered themselves and so not particularly bothered, aren't they? [Post edited 30 Jun 2017 13:16]
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I guess if you were to deregister, existing clients would not expect to have in increase in cost. Assuming they are VAT registered also, they would reclaim the VAT currently. If you deregister, you would not be able to increase your sale, as this would impact them as there is no longer VAT to reclaim. Therefore, as you can no longer reclaim VAT on purchases, your profit will be hit. [Post edited 30 Jun 2017 13:23]
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| Quick straw poll... on 13:26 - Jun 30 with 2551 views | factual_blue |
You're just trying to find away to claim the VAT back on your vastly expensive, 22 course, 7 hour lunches. |  |
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| Quick straw poll... on 13:31 - Jun 30 with 2534 views | hoppy |
| Quick straw poll... on 13:23 - Jun 30 by tractorboy7777 |
I guess if you were to deregister, existing clients would not expect to have in increase in cost. Assuming they are VAT registered also, they would reclaim the VAT currently. If you deregister, you would not be able to increase your sale, as this would impact them as there is no longer VAT to reclaim. Therefore, as you can no longer reclaim VAT on purchases, your profit will be hit. [Post edited 30 Jun 2017 13:23]
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Thanks. It's not just a case of deregistering, but a new company, which I'm leaning towards being better to voluntarily register, as for those existing clients that will form a very important part of my new sales, it would be better to have as little change as possible for them from what they've been used to. | |
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| Quick straw poll... on 13:33 - Jun 30 with 2524 views | hoppy |
| Quick straw poll... on 13:26 - Jun 30 by factual_blue |
You're just trying to find away to claim the VAT back on your vastly expensive, 22 course, 7 hour lunches. |
I've actually been making my lunch in my office myself rather than take the time to go and get something for the last month or so particularly, but you tend to forget I'm not a civil servant... | |
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| Quick straw poll... on 13:37 - Jun 30 with 2509 views | factual_blue |
| Quick straw poll... on 13:33 - Jun 30 by hoppy |
I've actually been making my lunch in my office myself rather than take the time to go and get something for the last month or so particularly, but you tend to forget I'm not a civil servant... |
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| Quick straw poll... on 13:54 - Jun 30 with 2483 views | WeWereZombies |
Unless you have a considerable volume of purchases, say more than 20% of sales by value, I think you may be better off not registering. You will not have to charge your clients VAT and that will be good for the ones who are not in a reclaim position. On top of that you can dispense with all the kefuffle of VAT returns. |  |
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| Quick straw poll... on 14:20 - Jun 30 with 2446 views | hoppy |
| Quick straw poll... on 13:54 - Jun 30 by WeWereZombies |
Unless you have a considerable volume of purchases, say more than 20% of sales by value, I think you may be better off not registering. You will not have to charge your clients VAT and that will be good for the ones who are not in a reclaim position. On top of that you can dispense with all the kefuffle of VAT returns. |
I've just found out, if you do voluntarily register, you can claim back up to 6 months for services paid for before registering, so I could do that for the things I've been paying out for in getting set up, but I wouldn't be able to charge or show vat on any invoices until having a vat number.
The purchases would be minimal for my company, but could be quite sizeable if buying print on behalf of a new client that doesn't handle the print themselves, and I would obviously be having to pay the vat to the printer so would need to allow for that in my own invoicing if I'm not registered. | |
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| Quick straw poll... on 14:38 - Jun 30 with 2419 views | MedwayTractor |
I was registered from the outset, it allowed me to claim back quite a lot on my start-up costs, but the real reason, as others have said, is a status thing. My client base was made up of the sort of companies which would work with suppliers of substance. VAT registration is one obvious way to demonstrate status for a small company. |  |
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| Quick straw poll... on 15:15 - Jun 30 with 2396 views | hoppy |
| Quick straw poll... on 14:38 - Jun 30 by MedwayTractor |
I was registered from the outset, it allowed me to claim back quite a lot on my start-up costs, but the real reason, as others have said, is a status thing. My client base was made up of the sort of companies which would work with suppliers of substance. VAT registration is one obvious way to demonstrate status for a small company. |
Thank you. That's the way I'm thinking I will go, but just wanted to get a feel from others of the TWTD School of Life, Business and Everything... | |
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