Obtaining a VAT number UK is a huge step forward for many businesses. If you are a business that has a threshold exceeding £85,000 during the past 12 months, it is mandatory for you to get registered for VAT and obtain a VAT number UK. However, when you don’t exceed such threshold, it is optional for you to obtain the aforesaid registration. Such registration is called voluntary registration.
In the event of obtaining a VAT number UK, your business is likely to stand out of the rest as a more credible company. When a VAT number is displayed in your materials, websites etc. outside vendors might picture your company as a large scale one. Such situation will encourage other companies to do business with you.
If you opt for a voluntary registration, you become eligible to reclaim the VAT on the goods and services by HMRC. This is called VAT refund (which is eligible only for VAT registered businesses). If your business frequently deals with companies that are registered for VAT, it is wiser to opt for a voluntary registration and get VAT number UK even if you haven’t reach the minimum threshold limit (£85,000).
In reality, competing with well established companies is a tough challenge for SMEs. This is why startups should take all the measures to boost their business profiles and try to fit the criteria of large companies. Obtaining a VAT number UK is something that can help such businesses to boost their profiles and gain more integrity in the respective industry.
However, the situations might differ from business to business. Therefore, it is always better to seek the assistance of a VAT expert before you go for voluntary registration. An expert will be able to help you to measure the pros and cons of vat registration precisely.