I'm vat registered (though not voluntarily) but I would suggest it would be sensible to register if the majority of clients were vat registered. If your clients were not vat registered on the whole then I would not register on the basis that if they were happy to pay the unclaimable vat then charge 17.5% more and keep it for yourself (but don't call it vat!)
I'm not VAT registered and neither are the few clients I have.
I will review this when (glass half full mentality) my client base builds. At the moment there is no great advantage to registering, as the limited amount of purchases I make don't involve much VAT to claim back and it helps keep my prices down a bit.
Like Rob I'm also VAT registered (and also not by choice).
As Rob states, for non VAT registered clients it makes my fee's 17.5% more expensive than my competitors.
There you go Peasie, complete set of Amigo's as usual.
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I'm not VAT reg and half of my clients are and half aren't and no one has even mentioned it. I don't think mine are that bothered because if there accountant did my work they would be charged so much more for it anyway, that they look at me as a saving.
I did register for VAT on a voluntary basis. 99% of my clients are VAT registered as are all of my suppliers so for me it made sense. My non VAT registered clients are so few that since registration I absorbed the cost of the VAT myself because they are long standing customers.
