The 5 Hidden Benefits of Being VAT Registered

If you’re a small business, you may not be VAT registered yet. Sometimes it’s not necessary but it is something you need to consider, especially if you are confident your turnover of taxable supplies is due to hit over £81,000 (the current threshold). It may seem like a nightmare process but there are some hidden benefits to being a VAT registered company.

1. It makes your company look like a major player

As a start-up business, you want to grow and sometimes the best way to develop a steady client base is by presenting yourself as being bigger than you actually are. By voluntarily registering for VAT, you are basically sending a strong message out to potential customers – that you have a minimum £81K turnover and that your business is going places. That will give you an edge over other new start-ups that aren’t yet VAT registered.

2. You will open new business avenues for yourself

Time for a reality check – there are many businesses out there that won’t work with you unless you’re VAT registered. If you can’t provide a proper VAT invoice, many businesses won’t deal with you, which is a shame if you’re a small and growing business. So again, being VAT registered is a confidence trick that works in your favour.

3. You can take advantage of VAT refunds

If you’re buying a lot of goods, you really want to be able to claim the VAT back at the end of year. By being VAT registered, you can do this and trust us when we say there’s nothing better than HMRC giving you money back!

4. You don’t have to worry about the VAT threshold

A lot of small businesses unwittingly exceed the VAT threshold. This can get you in a lot of trouble with HMRC but if you’re already VAT registered, you don’t need to worry about ending up in financial troubles due to an oversight on your part.

5. You get given a VAT registration number

Again, this gives customer confidence in your small business and gives you a more successful image that says ‘my business earns more than 81K’.

If you are a SMB that wants to be voluntarily VAT registered, speak to our team today for advice and assistance in getting set up.