Voluntary VAT Registration
You are allowed to register voluntarily for VAT even if your company does not yet exceed the mandatory registration limits. There are several benefits of doing this.
Advantages of voluntary registration for your company:
* Customers and suppliers may view your company as a bigger business
* If all or the majority of your company's sales are a t the zero rate, it would be eligible to reclaim the VAT it has been charged.
* Would mean that the risk of penalties for not registering once your company exceeds the registration limits would be overcome.
Disadvantages of voluntary registration for your company:
* The extra burden on administration, submitting returns, making the calculations
* Customers may be lost if they themselves can not reclaim the VAT your company charges them
* Preparing and maintaining accurate VAT accounting records
The benefits and drawbacks of early registration have be considered in the light of what is best for the company and the people who run it.