As this article is about VAT – I am unusually going to start with a health warning. Don’t mess with VAT authorities – if sales of your business are likely to be £81,000 or more you have to register for VAT. And while most of VAT is straightforward there are lots of wrinkles to catch you out – so take professional advice before you get in trouble. Getting a bad VAT record is actually a real pain – eg it will lead to more frequent inspections etc.