New Co VAT Registration

New Co VAT Registration

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Dear All

I want to register a new limited company for VAT. The company will be small in nature and will unlikely reach the VAT compulsory threshold anytime soon.

Would HMRC frown on VAT returns of less than £50-100 in value each year? I forsee the potential business turnover as being around the £1000 mark in the first year.. The reason for the registration is for client perception and I wish to start VAT right from the beginning.

Thanks for your help.

Replies (3)

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By JCresswellTax
10th Nov 2011 09:33

No problemo

I don't see any problem in doing that.

Just remember though that you will have to charge VAT on sales, so to be competitive will have to either absorb the VAT charge in your fee or risk your price being slightly higher than your rivals.

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the sea otter
By memyself-eye
10th Nov 2011 09:56

I would change the clients perception

As this just adds to the complexity and as has been said, increases the costs of their services unnecessarily.

Can't see why you would do this at all..... 

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By AJ Simmons
17th Nov 2011 05:24

To register or not to register

 

Even though your business is small deciding to register still takes some planning by playing with the numbers.  It’s better to see how absorbing the VAT or charging your customers is likely to affect your business in comparison to your competitors...

Yes, the advantage is that your business looks bigger in size however having a good website/marketing materials can also help you achieve this.

Yes, the disadvantages are dealing with the administration to deal with and charging your customer's VAT.  However, given the size of your business at the moment returns are going to be relatively straight-forward and charging VAT won't necessarily make you less competitive.

If you like get in touch with me and we can discuss it further.

Amy Simmons

info@ simmonsharlow.com

 

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