Should I register for VAT?

[coolcatkelso]

Hiya guys

Finally went self employed and its official lol, but should I register for VAT?

I know the benefits are claiming back on tools and fuel etc, my turnover wont hit the £60k I don't think not this year but is it worth it just to claim back?

Any thoughts

 

[SASroofer]

I did it in preparation for when I evenyually did reach the 60k mark, there aren't any disadvantages to doing it either imo.

 

[noseall]

I think it is closer to 70k now.

If you are out of the loop i.e. all your customers are private, then there are few if any advantages. You just become a collector of vat.

But, if your material turnover is high and you are in the loop where you are amongst other vat registered companies then go for it.

 

[Nige F]

I did it in preparation for when I evenyually did reach the 60k mark, there aren't any disadvantages to doing it either imo.

What amount of unpaid time does it take up . Have to admit I hate all paperwork , but nevertheless.......

 

[SASroofer]

Probably an hour every quarterly Nigel, if you have an accountant. I hate paperwork, I find the monthly contractors returns more of a pain, got my accountants doing those for me soon too

 

[Mw Roofline]

No, don't register for VAT until you really need to. Keep an eye on your turnover.

 

[datarebal]

i would say dont register yet, get used to the self employed angle first, watch your turn over, if it looks like you may get near the limit then register.
Also you'll be a tad cheaper to private customers as you wont be charging vat on labour. This will help in the first year or so

 

[davecrouch]

if your buying new van for the business it might be worth it anyway going vat registered otherwise its quite a bit of work, all your accounts have to be kept well up to date. and make sure you put the vat money to one side, i keep mine in another account as i dont want it spent and be in the dire when you have to pay it it has advantages for sure, but also drawbacks.

 

[datarebal]

if your buying new van for the business it might be worth it anyway going vat registered otherwise its quite a bit of work, all your accounts have to be kept well up to date. and make sure you put the vat money to one side, i keep mine in another account as i dont want it spent and be in the dire when you have to pay it it has advantages for sure, but also drawbacks.

Correct..