Being VAT Registered is Killing My Business: Navigating Financial Strain VAT (Value Added Tax) registration is a critical turning point for many businesses. Reaching the threshold where VAT registration is mandatory often appears as a sign of growth and success, yet for some companies, it marks the beginning of challenging times.. "Being VAT registered is killing my business" is a common complaint amongst many small business owners who begin to feel the pinch after VAT.
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Setting up NewCo. With the new company, do the maths, assuming VAT is payable. Make sure your business model allows for VAT. Do not that, if HMRC see a new company set up, where one or more of the Directors were Directors of a company that went into liquidation owing VAT (or PAYE, etc), then HMRC have power to demand Security of the new company.. Of course, an obvious choice. Probably the most logical benefit of being VAT registered in the UK is the ability to reclaim VAT on your purchases where applicable. As a business owner, you will now enjoy the advantages of being VAT registered by getting back 20% of the cost of goods and services that you had previously missed out on.
