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[Markjay]

I set-up a small business with a colleague earlier this year and on 5th July we applied for VAT registration.

It hasn’t come through yet... apparently they currently have a backlog of 12 weeks, and today they are processing application from 25th June  .

Needless to say that we were unable to do business so far because if we do then we will lose the VAT anything we buy...

'Friendly for business'? 'Improving the civil service'? Not round here mate...  

[Markie]

i`ve been looking into this too, have i got it right in so much as its mandatory if your business earns more than 64k but not so under 64k per year  :-/

If so cant you trade, pending and backdate...or is that naughty?

[Markjay]

i`ve been looking into this too, have i got it right in so much as its mandatory if your business earns more than 64k but not so under 64k per year  :-/

If so cant you trade, pending and backdate...or is that naughty?

You can - but this is awkward. For example if you invoice customers with 'VAT registration pending' notice, you can invoice them separately for the VAT later, but then you bother your customers with two invoices. Also you are practically shouting out 'Hey, I am new company' and this does put people off. I am not saying you should be dishonest about this, but the idea is to make it as easy and convenienet as possible for customers to do business with you.

The point is that the VAT is generaing income for the government, so you would have thought they would want make sure it works well - if they cant even put money into this, then this is not good...  

[Markie]

i`ve been looking into this too, have i got it right in so much as its mandatory if your business earns more than 64k but not so under 64k per year  :-/

If so cant you trade, pending and backdate...or is that naughty?

You can - but this is awkward. For example if you invoice customers with 'VAT registration pending' notice, you can invoice them separately for the VAT later, but then you bother your customers with two invoices. Also you are practically shouting out 'Hey, I am new company' and this does put people off. I am not saying you should be dishonest about this, but the idea is to make it as easy and convenienet as possible for customers to do business with you.

The point is that the VAT is generaing income for the government, so you would have thought they would want make sure it works well - if they cant even put money into this, then this is not good...  

I see your point  :-/ as said been looking into this myself and still getting to grips with it...

[stevief]

Guys,

There is some really good information here http://www.pcg.org.uk/cms/index.php in the new to freelancing section.

The time to get registered varies from month to month and back charging seems to be the only way around it but I've been wrong in the past.

Other point worth mentioning is the flat rate scheme depending on the type of buisness you have as it can save on a lot of additional paperwork.

Good luck with the venture.

Steve

[justme]

If you are projected to hit the limit, you will be liable to account for the vat, if you charge clients or not.
depending on your business could you not arrange as 2 seperate entities, and double the limit.