A client who recently set up a consultancy business had no associated costs or expenses and therefore no VAT inputs.
Flat Rate VAT Advantages
I recommended that he file for VAT registration immediately on the flat rate basis. This had three advantages:
One, it would enhance his reputation both with his suppliers and his customers.
Two, he would get a proportion of the VAT that he charged all his customers back from Customs and Excise.
Minimise VAT Record Keeping
Three, this would minimise records that had to be kept as compared to normal registration for VAT.
If you wish to find out how flat rate VA affects you and your business, contact Green and Peter on 020 8446 8100.