This is my first post here but I'm looking for some objective views from guys that use web hosting alot.

 

When looking for a web host, would you be more inclined to go with a VAT registered host or a host that's not vat registered?

Not sure it'd make much difference to me.

This is my first post here but I'm looking for some objective views from guys that use web hosting alot.

 

When looking for a web host, would you be more inclined to go with a VAT registered host or a host that's not vat registered?

 

Not sure it matters, our business is split four ways (including our hosting arm) to avoid VAT (for now) as a lot of our smaller clients aren't VAT registered themselves so it becomes a little prohibitive.

 

Does it make us any less capable? Of course not.

 

What I would do is avoid a reseller, go direct to source.

the only real difference is if the client is VAT registered themselves and wants to claim it back from their purchase from you. You may get a client who prefers it that way but I suspect your hosting isn't going to be aimed at those who want to offset such small amounts.

Thanks for the replies. I was just wondering if being VAT registered would give a better impression of the business. Obviously, when looking for a web host, customers need to be able to trust that a company isn't going to stop trading after a short while and leave them in the lurch so just wondering about the best way to put across that we're not going anywhere.

I believe still that anyone can voluntarily register for VAT and you have to over a certain amount of turnover. Looking at a company to see if they're VAT registered is not a sign of their trading status. If you're that worried about who you trade with then you're going to want to zip over to Companies House to see their history...if they're a Limited company of course.

Thanks for the replies. I was just wondering if being VAT registered would give a better impression of the business. Obviously, when looking for a web host, customers need to be able to trust that a company isn't going to stop trading after a short while and leave them in the lurch so just wondering about the best way to put across that we're not going anywhere.

 

If you want reassurance do two things, pay for a credit check and give them a phone call, suss them out if it makes your happier.

It's my understanding you only become a VAT registered company once your turnover is 77k a year. I know of some companies that set up sister companies to avoid this as it's sometimes better to have two small companies and charge your customers less than have one large company and have to charge VAT as well. I don't think being VAT registered can be used as a sign of trust or quality.

 

I also find the perception of a LTD company being a good thing a bit odd, all it means is if something goes tits up you can only sue them for the value of the companies assets, which is quite often nothing as if an LTD gets into legal trouble it can just dissolve itself and rename itself and set up a new LTD called something else. This is often the technique used by cowboy builders, an LTD is only good for the company itself, not the customer.

any one please tell me what is VAT ? & LTD?

Using a company that is VAT can give you a sense of security in the company as it could mean the company is doing really well and has reached the minimum VAT limit. It can also allow you to get your VAT back if you are also registered for VAT.

 

A company can do one of the following when it comes to registering for VAT:

1. Voluntarily register for VAT to charge and claim back VAT (Of course only applies to EU users)
   
2. Wait until the 77K income mark, this is when a company is required by law to register for VAT. If your company is a registered sole trader/limited/partnership etc you need to register.
   

any one please tell me what is VAT ? & LTD?

 

VAT = Value Added Tax

LTD = Limited Company (Mostly known for being UK but some other countries also use LTD)