what is cost of registering for vat???

Yoshii

hi my other half is setting up a mobile hair business.what would the costs be for registering for vat ,although we dont expect to get above the tax threshold. it is to try and reclaim some tax back from the training couurse and some eqipment which adds up to nearly £1000 in vat.

so to recap what would accountants fees be for doing accounts vat registered and doing them without being vat registered.

any help appreciated

yoshii

WHA

Forget about the additional accountants costs for the moment.

Think about how much VAT registration will cost in terms of the VAT. You are forgetting the VAT she will have to PAY out of her income. If she charges £25,000 in total for hairdressing in a year, £3,723 of that has to be paid to the VAT man. Assuming she is doing hair for the typical domestic consumer, she can't add VAT to her charges, and so has to absorb them.

It is generally not wise to register for VAT until you have to if your customers are not VAT-registered business themselves. She will be better off just accepting the VAT she is charged and keeping all her income herself.

Yoshii

thanks for that. i will take your kind advice on board and not register for vat.
NOW anyone need a haircut???