VAT Registration

[MickeyP]

I had a Ltd Company back in 1999-2001. I remember my accountant saying at the time that I had the choice of registering for VAT or not. I did register for VAT but it was a bit of a pain to sort that lot out once a quarter and I don't recall getting many benefits from it as I had very few chances to claim anything back.

I'm going to start a new LTD soon and was wondering what anybodys recommendations are regarding this issue? There seems to be some new 5% flat rate thing that wasn't around when I last was a director?

Any pointers would be appreciated.

[Back In Business]

Register for VAT - do it online, it's quick and easy - get your accountant to sort out the flat rate scheme for you.

Currently the FRS is that you pay 12% back on everything in the first year and 13% after that.

[Nixon Williams]

The Flat Rate Scheme will boost your income by 3.4% in year 1 so generally it is worth doing.

I would recommend that you register for VAT and the Flat Rate scheme at the sametime, your accountant should be doing this for you when they form the company for you.

Alan

[KennyG]

Be aware that my recent VAT application took 6 weeks to go through - and even then they got the classification wrong - and they lost my Flat Rate Application Form and I had to send another one.

[Hedgehog]

And they're doing further checks because of a fraud investigation this year. So it will probably take even longer.