vat registered or non vat???

[cazp]

Just setting up in business on my own - Building trade. Been to the tax office. Paying NI by direct debit, and got a CIS card. Am I vat registered. What is the difference between vat registed and non vat. Know I need to keep accounts etc but the vat bit throws me

[buildersmate]

If you are VAT registered you must charge VAT on all your services, and you can offset the VAT from any goods and services that you buy from others. Its just another set of hoops to leap through. You do not HAVE to be registered unless your turnover is over �61k pa - over which you have no choice in the matter. Its another branch of HMRC - who also deal with your tax and NI.

[Bev2007]

Just to be clear, if you were registered for VAT you would know.

Have a look at this to get some basic info
http://www.businesslink.gov.uk/bdotg/action/la yer?r.l1=1073858808&topicId=1073859245&r.s=tl

A couple of main things to think about when deciding whether to register for VAT are:
1. the jobs that you do, will a big chunk of your cost be materials that you buy, or will it be labour? If you are buying a lot of materials, will you be paying VAT on them?
2. If you are VAT registered you will have to charge another 17.5% on the jobs you price. Will it be more difficult to win work ?

[-Zorro-]

you dont have to register till your turnover is about �60k....up until that point in your first year you dont have to register.

If you sell to public then best not to be vat registered as they cant claim back the vat on your invoices to them.. If you sell to businesses then if they are vat registered you can add vat on your invoices and claim all your input vat back.The client will be able to claim the vat back on your invoices to them so wont be bothered about the 17.5 % vat you charged on top as they will get it back on theor next vat return. So you will be benefiting by being able to claim vat on purchases but not be more expensive to client as they can get the vat you charge them back