Paying someone who is not vat registered

What are the benefits of being VAT registered? Maintaining up to date records will provide better information for running your business. Talk to your accountant about the exact details. If you are in a VAT reclaim situation then you will definitely be better off. Are there any disadvantages of being VAT registered? There can be increased admin and bookkeeping costs.

UK We use some essential cookies to make this website work. Accept additional cookies Reject additional cookies View cookies. Hide this message. Home Business and self-employed Business tax. VAT registration. You can also register voluntarily. You may get a penalty depending on how much you owe and how late your registration is. Print entire guide. Brexit Check what you need to do. Is this page useful?

Maybe Yes this page is useful No this page is not useful. You should consider this when setting or agreeing a price if you become VAT-registered. To make sure you get your tax return in on time, keep your accounts up to date.

A limited-cost business must use a flat rate of The net effect is most limited-cost businesses should either de-registered for VAT if their turnover allows or move to standard VAT accounting, meaning they account for VAT on their sales and purchases. Note: The test applies only to goods and not services, with goods excluding things such as travel, rent, accountancy fees, insurance, etc. You need not provide any additional information.