Ep 37 - How to prepare yourself practically and emotionally to becoming VAT registered

Inspiring Women in Business

VAT registration can be a bit overwhelming but knowing its practicalities and planning out things well can give you the peace of mind and relief to take the next steps necessary for your business growth and success.

In this episode, Ruth Gilbey talks about the top tips on planning to become VAT registered, the logistics around being VAT registered, how you plan for being VAT registered, the mindset shifts, and the realities around what it means to be VAT registered as a business owner.

Key takeaways from this episode:

• You need to register for VAT if your turnover is 85k or more in any rolling 12 months.
• You don't have to wait until you are at the 85k turnover mark to register to be VAT registered, you can do a bit more planning and take more control of the situation. You can register at any time, you don't have to have hit that mark.
• Set yourself up as a limited company, get yourself an accountant, and get VAT registered.
• It's a little bit more complex than being a sole trader or self-employed.
• When you move from being a sole trader, freelancer, or self-employed to being a limited company, the VAT allowance resets itself.
• You can claim back VAT and offset it against your VAT bill if anyone you've invoiced is VAT registered.
• List all your suppliers and all your outgoings and identify which ones were VAT registered.
• This is also a good chance to audit your business expenses.
• Update your website to have your VAT registration details on all your checkout pages, invoices, and account system.
• Remind yourself that paying taxes is a good thing.
• Being VAT registered will give you relief to take action in your business.
• Give your clients notice if you’re planning for a price increase.
• There needs to be more transparency with business coaches and business owners about the running costs of your business.
• Be careful aspiring to revenue promises that don't give you the real data behind them.
• A 20% profit margin in your business is seen as a good profit.

Episode Timeline:

00:04 Episode Intro

00:28 Podcast Intro

05:16 When should you register for VAT?

06:44 Setting yourself up as a limited company

07:50 Getting help from an accountant

09:17 VAT allowance reset when transitioning into a limited company

10:55 Claiming your VAT if you invoiced anyone who is VAT registered

11:43 How Ruth planned for becoming VAT registered

13:04 Identifying who your VAT-registered clients, suppliers, and outgoings are

15:03 How being VAT registered shifted Ruth’s mindset

16:06 What to remind ourselves about paying taxes

16:52 Not holding yourself up and taking more actions in your business

17:27 Planning for a price increase and giving notice to clients

18:44 Transparency with business coaches and owners about your running costs

24:00 Outro

Workbook Link:

Set Your Secret Base Rate - https://www.ruthgilbey.com/base-rate-workbook

More about Ruth:

Hi, I’m Ruth, a business coach specializing in helping freelancers and business owners adjust their mindset and their marketing so they can get fully booked with clients they LOVE to work with. I’ve helped hundreds of self-employed women achieve the time and money freedom they craved.

I’ve started this podcast because when I first went all in and left the corporate world to be a freelancer, I was grateful for any work that came my way. After over 20 years of freelancing and working for other people, I started to realize I’d created a glass ceiling for myself.

In 2017, I finally started listening to that voice that had been telling me for a long time that I wasn’t doing what I loved and fulfilling my true potential. It took a critical illness to give me that wake-up call. I don’t want the same to happen to you.

You can expect practical advice, inspiring stories, and a lot of aha moments as we uncover and kick to the curb all the obstacles you have been putting in your way.

I’m on a mission to inspire women to start and play bigger in business.

Connect and know more about Ruth Gilbey here:

Coaching: https://www.ruthgilbey.com/coaching

Facebook: https://www.facebook.com/ruthgilbeymarketingandcoaching/

Instagram: https://www.instagram.com/ruth_gilbey/

LinkedIn: https://www.linkedin.com/in/ruthgilbey/