Creating a corporation might prevent you from personal liability, while not incorporating might protect you from double taxation. These companies need to have a minimum of £50,000 share capital and put the letters PLC after their name. According to information from Bloomberg and published by Forbes, 80% of small business owners will see their venture fail within 18 months. Therefore, when you weigh up the pros and cons of being VAT registered and consider the following cons to far outweigh the pros, you should ignore the option of voluntary VAT registration: In order to become VAT-registered you have to sign in to HMRC Online Services — it’s a fairly straightforward process and takes HMRC approximately two weeks to process the application. The most important thing to remember when you do register for VAT is to begin keeping records and accounts with all relevant invoices and receipts. Outlining and enforcing company policies related to compliance with government standards makes it more likely that employees will observe legal restrictions related to your company, since they're incorporated into your infrastructure. The option to transfer to other departments may be … There is a constant feeling of guilt when you are not working. Advantages 1. Such paperwork is unavoidable for VAT registered companies. Moving to a limited company setup is a big decision for anyone. It’s great for marketing — small businesses who are VAT registered can enhance their image by appearing more credible. Morgan Rush is a California journalist specializing in news, business writing, fitness and travel. A few cons of owning your own business may include: Difficult. Whenever you hire a pro, there are certain costs that come with it. The Cons of a Holding Company 1. Retain full control of your business: You’re not required to give up shares in your company; Managing cash flow: A credit card can be used to pay for things while waiting for money to come in. The Pros and Cons of LinkedIn for Business. Both have their advantages and disadvantage. To help you determine whether the “risks are worth the reward,” we’ve provided a rundown of the top pros and cons associated with fleet programs. But what you need to consider if whether the move is right for you and your business. Researching, writing, incorporating and enforcing company policies and procedures takes time and money. Likewise, many businesses prefer not to work with other businesses that are not VAT registered as they may be perceived as being “too small”, hence VAT-registered businesses are given a VAT number that can be displayed on company letterheads, invoices, stationery etc as evidence of credibility/VAT registration. VAT Returns are normally completed online for every 3-month VAT period. This is why you need to be informed about pros and cons of a business expansion, and this guide is a good place for you to start. Lack of liabilities and warranties: open source software usually contains limited warranty … To find out more about the pros and cons of being VAT registered, contact our professional and reputable company formations team who will help you every step of the way. Company-provided cars (fleets) can be a great option for your mobile workforce, but they also come with unique challenges. Thinking about going over to the dark side? And since there are invariably two perspectives to most things, let’s look at the both sides of the VAT coin and explore the pros and cons of being VAT registered (voluntarily). restaurants, farmers, supermarkets, transport business e.t.c. They have to be sent to HMRC within one month and 7 days after the end of the VAT period. 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