Why it might be advisable to register for VAT


hi my name is Marc friend and I'm a

director here at friend of grant I

wanted to talk to you today about the

potential benefits of voluntarily

registering for v80 and in what

circumstances definitely wouldn't be

worthwhile you need to compulsorily

register for v80 when your VAT herbal

turnover exceeds the VAT threshold which

for the tax year 2021 is 85,000 pounds

however when you start up and in your

early years your turnover will probably

be below the VAT threshold as a business

however you are usually paying out the

80 which if you are VAT registered you

could recover so is it a good idea to

voluntary register for v80 to consider

this we need to look at your customers

your customers will either be other

businesses or consumers or a combination

of both this is known as b2b business to

business or b2c business to consumer

let's look at business-to-business b2b

say you have a fire alarm business which

has secured a contract with a VAT

registered business the contract

involves you buying goods costed 6,000

pounds which includes v80 totaling one

thousand pounds it may make sense to be

registered from day one not only can you

reclaim the v80 on the goods you are

buying but also all the v8 e on your

overheads and your set up costs your

customer who is already VAT registered

will be fine as the v80 charged will not

impact on them as they can recover the

v80 you charge that registration in this

situation can make a substantial

difference to what you charge to your

customer and the profit you can make in

most situations where you are dealing

largely b2b you should seriously

consider registering for v80 either

immediately or as soon as possible there


call of Bursley if your contract for a

firearm is with an individual or say a

landlord who is not that registered then

you charge in additional v8 e on your

labor cost could make you more expensive

than a

predator in general our business which

is predominantly b2c business to

consumer should not register for v80

voluntarily they could of course be

other reasons to voluntary register if

you have incurred significant upfront

costs you might want to recover the v80

early also the kudos if your VAT

registered the perception is that you

have a larger business whatever you

decide to do we would recommend strongly

that you seek advice on v80 immediately

v18 should not be ignored so this video

has triggered concerns or thoughts and

why not arrange a meeting