Vat registration - Is it worth it ?

[arboriculturist]

Having been registered for VAT for Firewood sales for a few years now, I am finally looking at the pros and cons of being registered. It's always good good to seek the wisdom of others but here are few of the pros and cons I have encountered.

 

Con's

If you have more than 1 business then one of the businesses has to be a partnership or Ltd.

This means additional overheads   e.g. Seperate accounts for each business, can't share equipment / vehicles between businesses, can't use staff common to both businesses etc.

 

Pro's

Vat can be reclaimed on purchases.

Roundwood is purchased @20% vat and Firewood is sold @5% to consumers.

 

I'll be interested in other's views.

 

 

 

[Alycidon]

Depends on your circumstances,   running multiple business then they need separate accounts anyway,  otherwise how do you know which one is making money and which not !!.

 

If you were unable to reclaim the 20% cost on your cord then you would be 15% worse off given you are not charging VAT out at 5%.   Unless you are very small and getting your cord for nothing then I cant see to many benefits in not registering but your accountant would be the best person to ask.

 

A