What are the advantages of becoming VAT registered
- You can reclaim any VAT that you’re charged for when you pay for goods or services. The VAT you pay could end up being more than the VAT you collect from your customers, which means you can receive the difference back from HMRC, thereby saving you some money.
- If you have many business customers, they can claim back the VAT you charge (providing they’re also VAT registered), saving them money and ensuring you look more attractive than a non VAT registered firm.
- If you know your business is growing rapidly and you’re nearing the threshold, it can be worthwhile registering early rather than later. That way, you’re prepared for changes and you can adapt on your terms.
- It also looks good in the eyes of other businesses and clients. You look like a serious contender within your field. And potentially one that has a much higher turnover than you do in reality.
