Will you register for VAT?
If you’re going to make sales of over £58,000 in the year, then you’ll have to register for VAT during the year. In some cases it may be easiest to do this from the very start.
You may also decide to register your business for VAT even if you don’t have to. The benefit is that you’ll also be able to claim back VAT on things you buy. In the early days of a business, you may have lots of expenditure that includes VAT – for example, new machinery, vehicles, your first batch of stock – but not much income yet. In that instance you’ll actually get a cheque back from HMRC. Being VAT-registered also makes your business look bigger and more established, often useful if you are B2B.
But don’t rush to a hasty decision based on ...
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