Vat registration

10/05/2019 14:00:59
I am nowhere near the VAT registration threshold of £85000, however i am looking to buy a van for my business and the VAT alone costs £4934, is it worth me becoming VAT registered because of this?
Is it going to "cost" me in any other way? If I register for VAT, is that me vat registered forever then? Is there any other way to claim the VAT back instead ?
I will probably have to purchase the vehicle through hire purchase or bank loan, nearly £5000 Less to borrow would be really helpful. Is it going to disadvantage me in any other way?
I don't foresee any other large purchases or reason/need to be vat registered. Is there anything else that i can claim vat back on?
Thank you

Re:Vat registration

13/05/2019 07:43:43

If your turnover is below the VAT threshold of £85,000 then you can register for VAT voluntarily, but that is a decision for your business alone to make.

You can find more information on registering for VAT at:

VAT Notice 700/1: who should register for VAT

If you do register, you will need to charge VAT on your supplies, but can also claim VAT back on your business purchases. There is no other way to claim the VAT back on the purchase of the van.

You can also cancel your registration voluntarily but may need to account for (pay back) VAT on some of your business assets and stock.

You can find more information on cancelling your registration at:

VAT Notice 700/11: cancelling your registration

You can claim VAT back on business purchases that relate to the taxable supplies you make, subject to certain conditions being met.

You can find more guidance on this subject in Sections 10-13 of the VAT Guide, which you can view at:

VAT guide (VAT Notice 700) – Section 10