VAT Registration – Why is it so scary?
Have you thought about what you’ll do when your business reaches the VAT threshold? Is your business already nearing the threshold and you’ve slowed down your trading, for fear of what registration may hold?
Well we’re here to dispel the myth that being VAT Registered is scary, and therefore should be put off and avoided at all costs!
Reaching the VAT threshold, which is currently set at £85,000, is a fantastic achievement and one to be celebrated! Your business has taken off and become so successful, that you now need to register for VAT, yippee! This is something to be proud of, a milestone for your business and a platform from which to grow even quicker, now that you hold such a credible foothold in the world of (not so) small businesses.
We understand it’s a big step and can seem scary, but we’re here; to help you make sense of it, help you register, advise you on what you need to do and ultimately just turn the F.E.A.R. into the second meaning, rather than the first!
We can take care of the VAT Registration, any additional bookkeeping required and the VAT submissions, leaving you to get on with running your business. There are different VAT schemes for different types of businesses and we can help you decide upon the right one for you.
A few things to consider when you’re nearing the threshold;
- What’s holding you back? – Ask yourself, is it a genuine reason, or just fear of the unknown?
- Do the maths – Simply put, your VAT bill will be the difference between the VAT you owe for the goods and services you sell and the VAT you will be able to reclaim against applicable business expenses – probably less than you first thought right?
- Too much extra paperwork – Hey not a problem! There are some great bookkeepers out there, who are ‘Mad About’ helping their clients with paperwork! Joking aside, we would be happy to advise and assist with your registration, submissions and any additional paperwork involved and as you know, we don’t charge the earth!
- I’ll have to rethink prices and may lose clients – Yes this is something to think about, but it doesn’t have to be negative, loyal customers will be happy for you and if they too are VAT registered it will make no difference to them. Even if in the short term, you lose a few clients, being VAT registered will offer you a degree of credibility which will ensure your ability to grow sales even faster and you’ll soon be increasing your turnover to make up for any initial shortfall.
The ever-widening scope of VAT, the constant stream of detailed changes to the regulations, and the ever-growing demands of HMRC – calls for a well trained professional eye!
If you have any questions surrounding VAT, please do get in touch, we’re here to help ensure you make the right decisions for you and your business.
Essentially, what we’re saying is that VAT doesn’t have to be scary, but if you’re nearing the threshold and you are burying your head in the sand then stop! Pop in and see us and we’ll talk you through it, it’s only when you bury your head that things can become truly scary! We’re here to help, so just give us a call.