Do clients prefer my Ltd to be VAT registered? Do clients prefer my Ltd to be VAT registered?
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  1. #1

    Nervous Newbie


    Join Date
    Mar 2011
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    3

    Question Do clients prefer my Ltd to be VAT registered?

    In the past, the VAT threshold mandated my Ltd Co. to be VAT registered. These days I'm well under that and purchases that are "wholly and exclusively" for the Co. are also low. Consequently, I'm wondering whether it's worth the bother of staying VAT registered. Paperwork aside, the key issue to me seems to be whether clients prefer it one way or the other or don't care. The Co.'s clients are typically VAT registered themselves, but sometimes are not for the smaller outfits.

    Anyone know of arguments one way or the other?

    Thanks.

  2. #2

    More time posting than coding

    Greg@CapitalCity's Avatar
    Join Date
    Jun 2011
    Location
    London, UK
    Posts
    452

    Default All about the clients

    From your clients side, if they are VAT registered they won't care whether you are or not. If they are not VAT registered, they would love it if you are not VAT registered.

    From your side, being VAT registered will always leave you better off. If you have low/no expenses then go on the flat rate scheme.
    2012 CUK Reader Awards - '...Capital City Accountancy, all of whom were outside the top three yet still won compliments from CUK readers for their services' - well, its not an award, but we'll take it! - Best Accountant (for IT contractors) category
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  3. #3

    Default

    You should go on the FRS you'll make ~5% extra by being on the FRS v not being VAT registered.

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