Can someone please explain UK VAT rates?

-I am registered as a self employed caterer. I dont expect my turnover to go over the VAT threshhold at this time. However, I am paying VAT on all the food I buy so I am considering registering for VAT voluntarily. What does this mean for me? I can claim back the VAT I pay at the wholesalers for the food I buy to re-sell but do I have fees to pay for being registered? Does it affect my earnings etc?

Any help appreciated, as always

Thank guys and gals xxA lot of the food you buy will be zero rated but as you supply catering, what you sell will be standard rated. The result of registering for VAT will probably mean an increase in the prices making you less competitive.



Where it could be useful is if you are incurring a lot of VAT on capital expenditure or potentially rent.
You're not paying VAT on food you buy. Almost all food is zero rate, so the input reclaim will be minimal, but you will have to raise your prices by 20% to cover the VAT you charge.

Don't register voluntarily, there's no advantage.
I didn't think there was vat on food?

"Onestep..." If no vat is paid upon purchase... why would vat be charged upon sale? Surely if its vat free its vat free?

You would of course be able to reclaim the vat on fuel , a van, and other business expenses.

It should not affect your earnings.