What are the benefits of voluntarily registering my company for VAT?
VAT is obligatory for businesses whose turnover exceeds the VAT threshold. However, there are some benefits to registering your company for VAT on a voluntary basis.
If you are registered for the VAT standard scheme, you can recover any VAT that has been charged to you.
There is an alternative scheme called the Flat Rate Scheme which, prior to April 2017, produced an even higher recovery of VAT. However HMRC have introduced a new category for limited cost traders, which means that in most cases the flat rate scheme no longer produces a better financial return than the standard scheme (although it does still have the advantage of being simple to operate).
Apart from the financial benefits, being registered for VAT can help promote your business, presenting an image of a large, professional and well established organisation.
Read: In what circumstances is it not advisable to register for VAT on a voluntary basis?
Read: VAT Explained.