Taxes · UK

Should I register my B2B services startup for VAT in the UK?

Victor Iringere

November 11th, 2016

I have just registered a startup providing Digital Services and Solutions to other startups based in the UK. I have read a lot of advice on VAT registration and do not expect to reach the 81k threshold. However, I would like to know whether to elect to register for VAT anyway. 

I know that it helps create a good impression and any VAT-registered startups can claim their VAT back from HMRC. I'm wondering if the question I need to be asking myself here is whether a substantial enough number of my clients (UK startups) would be VAT registered or if I would just be creating an unnecessary financial burden for them and hurting my business?
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