One new client was purchasing a former cafe to refit it as a bistro.
In this case, everything they sell to the public would be standard rated for VAT purposes, but few of their purchases would have VAT to reclaim on then.
Their customers are private individuals. They aren’t VAT registered.
Price their menu as if they were VAT registered, but don’t register until the VAT registration threshold of £77,000 is reached.
That way there’s £12,833 of extra profit in their first year that would have been the VAT man’s!
When they register, on their first return they can claim back the VAT on fixed assets they still own, services and any stock in hand.
The correct advice will always depend on your individual situation.