VAT Registering - Am I missing something?

[TooPoor]

Hello, as a quick background, I'm starting a new business as a sole trader. It involves the buying and selling of machinery (B2B) where most of my customers will be VAT registered, and much of what I will purchase will be +VAT.

Are there any particular disadvantages to me registering for VAT immediately? Is there a minimum threshold for VAT registration?

I've taken a good look at gov.uk vat information, and I'm fairly sure about the answers but thought I would double check.

Many thanks.
TP

[21ATS]

There is no minimum threshold and I see no reason why you wouldn't register from day one being B2B.

[sleepezy]

There is no minimum (in fact you should as soon as you believe your t/o will exceed the threshold in the next period) - the only downside is a small amount of additional admin (particularly if you're trading after applying to register but before your reg no. is confirmed). However, the downsides are far exceeded by the upsides when trading with VAT registered businesses.

Possibly look at flat rate scheme initially as that may save you some pennies - but do the numbers first.

[Simpo Two]

If you're reselling then you pretty much have to be VAT registered or you'll wipe out your margin. As your customers can reclaim it it will make no difference to them. Indeed, if you didn't charge VAT you'd look a bit garden shed IYKWIM, so yep, go for it. You can also reclaim VAT on other things you buy for the business like desks, computers etc.

[TooPoor]

Thank you all, confirmed what I was originally thinking.