Is there any benefit in registering for VAT if my turnover is below the registration limit?

If your turnover is below the VAT registration threshold, you do not have to register but it is possible to submit an application for voluntary registration.

To decide whether this will be beneficial, you should ask the following questions:

  • are most of your clients registered for VAT? (in which case they will be able to reclaim any VAT you charge them);
  • how much VAT do you incur on your purchases and expenses, which you could reclaim if you were registered?
  • how do you feel about preparing quarterly VAT returns for submission within 30 days of the end of each quarter?*

* Flat rate and annual VAT schemes are also available

Link to further information:

http://www.hmrc.gov.uk/vat/index.htm