Voluntary VAT registered, is it worth it?

[Kev Stephenson]

I would be interested to know how you guys remain unregistered (unless you are one man free lancers)

 

The threshold is currently £70,000 turnover per year which equates to £300 a day (based on a 260 working day year)

 

If you are not charging more than £300 a day for a two man team, how do you make any money?:confused1:

 

Obviously a certain cash element comes in to play:sneaky2:, but not £20,000 + each year.

 

I only work 3 or occasionally 4 days a week - max 150 days a year I would think

[Al Cormack]

I think going on the replies from this thread, there are a massive amount who are in the "optional" area of turnover.

 

You saying you dont declare cash, that could end up causing big problems for yourself IMO?

 

What I was saying was to stay under the threshold, a lot of cash would have to be taken - not that I did - that's why I'm vat registered.

[Johny Walker]

What I was saying was to stay under the threshold, a lot of cash would have to be taken - not that I did - that's why I'm vat registered.

 

 

 

why would some one need to take loads of cash to stay under

[Al Cormack]

why would some one need to take loads of cash to stay under

 

Because it is based on company turnover. My turnover last year was around £130,000. Hypothetically, to stay under the £70,000 threshold, £60,000 of that would have to be undeclared, and the only way to do that is to be paid in cash and put it under your mattress.

[Johny Walker]

Because it is based on company turnover. My turnover last year was around £130,000. Hypothetically, to stay under the £70,000 threshold, £60,000 of that would have to be undeclared, and the only way to do that is to be paid in cash and put it under your mattress.

 

how many people do you employe ??

[Al Cormack]

Me and one other and then a subby now and then when it's busy.

Just recently taken on a third person as getting too busy at the moment.

[markiesla]

Not sure if anyone has already mentioned this - apologies if they have. To some being VAT registered adds an extra layer of "credibility" to a business. I wouldn't go as far as to say it gives a "warm hug" but it arguably reduces the fear of the "cowboy" element.

 

Of course just because one isn't VAT registered doesn't mean "cowboy" and similarly just because one is - doesn't mean they aren't a cowboy.

 

On a similar vein however some may view a VAT registered business as being more expensive.

 

Ultimately it boils down to what best fits your purpose as has been mentioned in a number of the responses.