VAT-should I be registered ?PMC Partnership
Firstly if your turnover is above £83,000 for any 12 month period you must be VAT registered. However, anyone can register for VAT and it can be an advantage for you. If your customers are mainly VAT registered businesses and you can add VAT to your price without changing their buying price (as they reclaim the VAT) then your VAT reclaim on purchases can be a financial advantage to you. However, if most of your clients are private individuals and are not VAT registered then adding VAT to your price may make you uncompetitive and thus your are better off not being VAT registered.