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VAT - Voluntary registration

Feeling rather embarrassed

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I guess I shouldn't feel so insecure, but did any other sole practitioners feel embarrassed about not being VAT registered?

I've taken on a few "larger clients" trading in the hundreds of thousands and I am a little worried about how it looks not being registered for VAT, I've had a couple ask me questions about why there is no VAT on my invoice.

I realise now I have underpriced most of my smaller clients who are unable to reclaim VAT, so wouldn't feel too guilty about adding 20% VAT onto their invoices, that said additional VAT returns arent something I would look forward to!

 

 

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13th Aug 2019 14:24

It's never bothered me.

It's a good sales advantage for unregistered businesses. No VAT registered business has ever mentioned it to me.

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By DJKL
13th Aug 2019 14:42

Never bothered mine either and most of my clients had a turnover of at least £100,000 (In fact all did except two who were vat registered but just below and two who were just tax return clients)

I possibly ought to have gone for a voluntary registration but frankly the vat savings on purchases never seemed sufficient to reward my time.

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to DJKL
13th Aug 2019 14:56

If you split the difference and up your charge to the unregistered by, say, 10%, you can cover input tax.

Everyone's a winner - except HMRC and who cares about them anyway ?

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By Matrix
13th Aug 2019 15:10

Use it as a selling point (for now, you hopefully will need to register in the foreseeable future).

The good old days of the FRS savings are gone. I just missed it. When I registered the only objection was from an exempt client, no personal tax clients.

If you are that bothered then register, you will recover input VAT on the escalating software costs.

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13th Aug 2019 19:51

not registered either - and don't intend to. Can do without the hassle and not interested in the extra income....

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By JoF
14th Aug 2019 12:08

Im not registered. Never been an issue with clients, other than one who was pleasantly surprised not to have so much going out from a cashflow basis on his first invoice after thinking I was VAT reg.

I would rather bubble away under the threshold rather than faff every 3 months, especially with MTD.

Seriously thinking of packing it in anyway. So fed up with it all.

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