28/06/2025
Impact of hitting the VAT threshold.
The bit I would add is that it depends if you deal with VAT registered businesses, non VAT registered businesses or private clients.
If it's only VAT registered businesses it just doesn't matter. Tell them, Add VAT to the invoice they claim it back.
It's the small (non VAT registered) business and private clients that create the issue. If there are ongoing contracts at £x per month.
You have taught them that it's 60 quid.
So they expect to pay 60quid. So people try to absorb the VAT making it 50+10 VAT and you are now potentially losing money with the same level of business (busyness).