As a business-to-business (B2B) company, there are some key advantages to registering early for VAT with HM Revenue & Customs (HMRC):
- You improve your professional credentials in the eyes of potential clients
- You show you’re a serious business that can handle money sensibly
- You can improve your profits by making use of the different VAT schemes
- You can add the additional 20% to your prices and be confident that your business customers will claim back this cost in their own VAT returns
There are things to consider before you decide to register:
- Once registered, you’re responsible for collecting VAT and paying it to HMRC
- You have the extra admin workload and finance duties of managing your VAT return
If you’re unsure whether registering for VAT is the best move, give us a call on 01454 300 999, or drop an email to info@fd-works.co.uk
Find out more about the FD Works’ approach to finance at fd-works.co.uk