Make More Profit By Registering For VAT

For those of you who don’t like reading I’ll say right at the start that I think YOU SHOULD GET REGISTERED FOR VAT AS SOON AS POSSIBLE unless a large proportion of your work is for private individuals or non-registered businesses.

I’ve made a calculator to show how much extra profit you’d make by being VAT registered and to work out whether the Flat Rate Scheme is better for you.

While processing our suppliers’ invoices it never fails to amaze me how many courier owner drivers and even small courier companies aren’t registered for VAT. With the VAT rate due to increase to 20% in January it seems to me that it’s now essential that everyone in this business gets VAT registered as soon as possible.

How far would you drive to save 20p/litre on fuel costs? How much haggling would you be prepared to do to knock £2,000+ off the cost of a new van? How about all your customers agreeing to increase your rates by 20%? This is what you’re missing out on by not being VAT registered.

Many people seem to be scared of registering for VAT – Read More…

Posted under Finance and Accounting

Posted by Alec at 10:06 am, August 23, 2010