One thing my knowledge is not and thats limited.
I`m talking domestic window cleaning and if you can show me a domestic customer attracted by your vat no. and extra 20 percent i will eat my hat.
Cash flow is cash flow the vat content should never be counted in though and thats a glaring error from you and thats where it is so easy to slip up. What if you need cash wise what you have taken in thats due to hmrc?,you are stumped,its a loan or dip into savings,easy mistakes are made.
Vat registering when dealing with commercial customers is a different ball game altogether and ought to make no impact whatsoever on net profit though you are indeed an unpaid tax collector.
Go on then,tell me what the hell you do when you go from 69,999 to 70k and need to be in vat if you are domestic,whats your advice to the poor soul this occurs to?
The taxman expects you to be trousering a percentage of your income un-declared in the window cleaning trade. If you want to be really smart you clumsily let these monies come to light if you are subject to an investigation and pay the extra tax due with what you have really trousered,even back 6 years or 10.