What are the advantages of being VAT registered?
Even if below the threshold, many people choose to register for VAT to give their business more â€˜kudosâ€™ with customers, or simply to make it appear larger than it really is â€“ and this is entirely up to you.
If you do choose to register for VAT then there is the advantage of being able to claim the VAT back on everything you purchase for the business, but the ultimate benefit of this will depend on the type of business you have. If you buy things in and sell them on as part of your business function then it will be an advantage, but if you just charge for your services and only buy things like stationery which are required to run the business, it will be less beneficial.
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