VAT registration for limited company - Advice please!
I am a freelance creative operating under my limited company. I've just been told by my acountant that I need to register for VAT.
Would love some advice and answers to my questions please!
• I mostly deal with mid - large agencies, are they generally happy to pay VAT?
• Do I need to let agencies know that I am VAT registered before I sign a contract with them?
• Do I just add VAT to my invoices?
• I have the option to be registered under the Standard Rate or the Flat Rate scheme - any suggestions there?
• Have you found that having to charge VAT decreases the number of companies willing to work with you?
This all just seems super annoying, and like a huge faff. Is it awful, or once you get used to it is it not really that bad?
Any and all advice welcome!
Thanks everyone!
Replies2
- Samuel has left a great response, so there's not much extra to say, apart from I concur!We found that when we became VAT registered, we did feel like we were being taken more seriously as a creative organisation. Larger organisations usually asked for VAT details upfront, and were pleased because they could reclaim VAT.If you do the flat rate scheme, it's quite straight-forward (so we don't use our accountant for this). However, if we move onto the standard rate, we'll need some extra support as it's a bit more complicated.If you're needing to charge VAT now, it means your business has grown, so congratulations! :-)
- @Samuel Ryan Wow! Sam, thank you so much for sharing all of this, you've really put my worries at bay. Really appreciate you taking the time to respond. It's so great to hear first hand from someone in the same position as me.
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