VAT - to be or not to be?
by Olly Lawer on Oct 17, 2011 at 11:12:25 am
I have just switched accountants and he has informed me if I want to claim back all the VAT from my equipment purchases, I need to do so before Feb 2012.
I have worked out the figure to be £1,600. Not to be sniffed at. However, this will push up my prices, or lower my income. I never intended to go VAT registered as my business has always been part time (to a day job), but now I have started full time.
Mostly doing corporate job with small to medium businesses with a mix who are VAT registered and not. I may (if money gets tight) branch into weddings too, where VAT registration will hamper me.
Of course if everything goes swimmingly and I earn over £63k I'll have to anyway! Plus apparently (seeing as I don't buy much stock) I can set up a scheme where I don't claim the VAT back, but keep a proportion of the VAT I claim.
It seems logical to go VAT registered but I'm worried that I will not be competitive and that it will be a pain to manage. On the flip side I don't want to lose out on £1,600 of all important cash flow now!
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