I currently work full time for a private company and am considering on starting up my own online software company by forming a private limited company. I had a few questions:
- I've noticed that the current VAT threshold for VAT registration is currently set at ~£70k, does this threshold take into consideration personal income from my full time job? It is likely I will exceed this limit if this includes both my salaried job income and the turnover from the registered company, therefore this is the reason for asking the question.
- Is it mandatory for private limited companies to be VAT registered?
- I personally would like to avoid VAT registration at present merely because I would see no advantage for my business except for a professional image. I will be running an online software company which will only have a few minor overheads, therefore I see no benefit in claiming a small amount of VAT. Can anyone see any pitfalls in this approach?