why register

charlie · 09-07-2009, 08:23:38 PM

apart from the tax implications, what other advantages or registering as a business?
i can claim the VAT back but are there any other day to day activities that would be better for a "sole trader" or "limited" status?

stevebrowne · 09-07-2009, 10:16:56 PM

You can run a limited company with registering for VAT.

In fact I think any business type: ltd, sole trader etc. MUST register for VAT if turnover is above a certain amount (�65k pa?)

Some companies treat you more seriously when you are a Ltd. Some affiliate networks have made noises about preferring to deal with Ltds., but to the best of my knowledge, none of them have done anything beyond making noises.

monaghan · 09-07-2009, 10:51:23 PM

as mentioned, VAT is not just for Ltd companies, it is based on turnover not company status, even if you don't register as a Ltd you still have to register for VAT when you hit the current year's threshold.

The main benefit of Ltd for a small outfit is that the company becomes a separate legal entity which you would own / co-own, in the event of any serious issue the legalities would be against the company rather than you (although if you commit any very serious issues you could still be personally liable so it's not a complete get out of jail free card).

A VAT registered Ltd will generally be taken more seriously than a sole trader by other companies.

If in doubt go and speak to your accountant or financial adviser who will be able to give you proper advise.

GreyWing · 09-07-2009, 11:11:14 PM

I am delimiting myself now ( I know not vat related) but benefits of that is that you can keep your accounts out of public view.

VAT is something to be avoided at all cost imo, the penalties for mistakes can be huge and prison time is a norm on that one. In fact they can lock you up without a phone call for 7 days the last time I heard.

That's apart from extra charges to your customers.

09-07-2009, 08:23:38 PM	#1 (permalink)
charlie Join Date: Jul 2004 Location: No fixed abode Posts: 2,629 No Classified Ratings Domain Trader Rating: (100% / 39)	why register apart from the tax implications, what other advantages or registering as a business? i can claim the VAT back but are there any other day to day activities that would be better for a "sole trader" or "limited" status? __________________ domains for sale: Cowrie.co.uk SEDO sites:iroses ichocolate sportsunderwear personallingerie Italy Hotels magazinediscounts

09-07-2009, 10:16:56 PM	#2 (permalink)
stevebrowne Join Date: May 2007 Posts: 844 No Classified Ratings Domain Trader Rating: (100% / 5)	You can run a limited company with registering for VAT. In fact I think any business type: ltd, sole trader etc. MUST register for VAT if turnover is above a certain amount (�65k pa?) Some companies treat you more seriously when you are a Ltd. Some affiliate networks have made noises about preferring to deal with Ltds., but to the best of my knowledge, none of them have done anything beyond making noises. __________________ Christmas Toys 2011 \| Winter Sport Insurance \| SDXC Cards

09-07-2009, 10:51:23 PM	#3 (permalink)
monaghan Join Date: May 2007 Posts: 1,040 No Classified Ratings Domain Trader Rating: (100% / 7)	as mentioned, VAT is not just for Ltd companies, it is based on turnover not company status, even if you don't register as a Ltd you still have to register for VAT when you hit the current year's threshold. The main benefit of Ltd for a small outfit is that the company becomes a separate legal entity which you would own / co-own, in the event of any serious issue the legalities would be against the company rather than you (although if you commit any very serious issues you could still be personally liable so it's not a complete get out of jail free card). A VAT registered Ltd will generally be taken more seriously than a sole trader by other companies. If in doubt go and speak to your accountant or financial adviser who will be able to give you proper advise. __________________ Alex Monaghan - Drop Catch & Drop Lists - PM for details Online Accounting\|Pine Furniture\|Barbie

09-07-2009, 11:11:14 PM	#4 (permalink)
GreyWing Join Date: Aug 2006 Location: Barnsley Posts: 3,169 No Classified Ratings Domain Trader Rating: (100% / 18)	I am delimiting myself now ( I know not vat related) but benefits of that is that you can keep your accounts out of public view. VAT is something to be avoided at all cost imo, the penalties for mistakes can be huge and prison time is a norm on that one. In fact they can lock you up without a phone call for 7 days the last time I heard. That's apart from extra charges to your customers. __________________ Make cash from your website, any website, any sector... That.co.uk Find out more

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