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Business Tips

Advantages and Disadvantages of being UK VAT registered.

A business is only required by law to register for VAT if their taxable turnover exceeds the £81,000 threshold. However for those businesses who’s taxable turnover is below this, it may be advantageous to register for VAT.


  • You will be able to recover the input VAT on any purchases made in relation to your trade.
  • The actual size of your business will be disguised even if you are nowhere near the £81,000 threshold.
  • The added credibility for your business.
  • Some suppliers only deal with UK VAT registered businesses meaning you will               have greater scope in sourcing supplies.


  • You will now have the requirement to file a quarterly (or monthly) VAT return to              HMRC.
  • You will now have to raise VAT invoices whenever you make a sale.
  • Must charge the appropriate rate of VAT on goods or services you provide.
  • Added administrative burden of maintaining paperwork and records.

If you voluntarily register for UK VAT and then decide that it is not worth it, then you can deregister from VAT as long as your turnover does not exceed the deregistration threshold. This threshold is currently £79,000.

If you would like more information about whether you should be VAT registered, then please do not hesitate to contact our dedicated VAT team on 020 8429 9245 or alternatively email info@wisteria.co.uk.

Disclaimer – all rates and thresholds were correct at the time of writing – September 2014.