Benefits to becoming VAT registered

[TheLordJohn]

Hi all.

I'm sure there are some negatives, also. But can people please tell me the pro's and cons to becoming VAT registered?
I think I am going to become VAT registered, voluntarily. As my turnover won't exceed c£80k.

Thanks all, Stuart.

[Vixpy1]

Business to Business - No change really
Business to Retail - You just made yourself 20% more expensive.

[_Deano]

Flat rate scheme could be beneficial if you're charging to another business.
i.e as a contractor with a limited company, charging an agent a daily rate.

[TheLordJohn]

Vixpy1 said:

Business to Business - No change really
Business to Retail - You just made yourself 20% more expensive.

Don't think you could have explained it any better to me in less words! Lol.
I've read up on it a decent bit these past couple of weeks and for a couple of things I wish to do, I must be VAT registered.

[Simpo Two]

I registered voluntarily because (1) I resold a lot of things (2) my customers were VAT-registered.

This meant that I could reclaim VAT on purchases, thereby boosting margin, and the extra % on my invoices made no difference to my customers.

When my business changed to consumer-based and fee-paying, the benefit became a polar disadvantage, so I de-registered.