VAT registration can impact a limited company in several ways:
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The company must charge VAT on its sales if turnover exceeds the threshold (£90,000 in 2024/25).
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It can reclaim VAT on business-related purchases, reducing costs.
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It must submit regular VAT returns to HMRC, usually quarterly.
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Prices may increase for customers if they’re not VAT-registered.
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Record-keeping becomes more detailed and time-consuming.
Overall, VAT registration can boost credibility but adds more responsibilities.
