VAT registration and your business

When it comes to running your business, should you register for vat or not?

There are several considerations.

First of course those that earn over £64,000 coming into the company each year then you have no choice and you will have to vat register.

For those who earn less then why should you vat register?

Well it could be if you deal with big players then you will think it seems better and might get you more business if you are vat registered as you want to position yourself as being a reasonably sized company.

However this is offset with the fact that if you vat register then you might put off the smaller companies who are themselves not vat registered.

For those who are it's not a problem but for the others, then if you are not vat registered they will pay that money and therefore you might lose a competitive edge over the other companies who can quote to them without vat.

And on top of that again, remember that you will have more vigorous and careful accounting to do and are more likely to get audited.

So balance carefully the pros and cons of vat registration if you have a choice before making a final decision.