Is there any advantages to being a VAT registered business in comparison to a non-VAT registered business....?

Question

in the UK? For example, do VAT registered business's have to pay less tax?

Answer 1

Vat registration is not compulsory, but you need to register if the turnover is (i think) over 53,000. (u best check)

by registering, you are able to claim back the VAT on any purchases that are used in connection with the business, however, if the business has a turnover of more than the VAT threshold, you will have to give back 17.5% from the sales, (which in theory, should have been charged to the customer, you are purely collecting the VAT for the taxman)

there are no distict advantages or disadvantages, it all depends on the indusrty your business is in, i.e. if the business is in Financial Services, then VAT is not chargable, but the business can be VAT registered to claim back the VAT on stationary etc etc..

Answer 2

I feel the biggest advantage is when you purchase items office items,petrol buisness meals ect  most are vatable,when registered you can claim back VAT you have paid compared to if you are not registered you cannot.

You would have to be good with saving money as if you are VAT registered you charge VAT and you will receive a big bill to pay it so make sure you save enough to cover it.

I am not sure if you have to pay more tax if VAT registered you do have to be earning over £60000 a year though to be Vat registered x

Good luck x*x