Welcome to the Cake Decorators Q&A

Hi,

I’m setting up a cake business as a sole trader and planning to offer cakes, kid’s cake decorating parties and adults’ cake classes. I don’t expect my revenue to hit the £81k threshold, but I’m wondering if I can and should register voluntarily for VAT. Can anyone advise?

Thanks.
Helen

Hi Helen

Congratulations on your business venture I hope it’s a great success for you. You can register straight away for vat and start to claim it back on all your purchases. If you want really excellent advice you may like to look at what’s on offer in the http://www.cakeflix.com/learn-to-run-your-own-cake-decorating-business. The Pro courses are designed exactly for people like yourself who are setting up in business. You can ask David Brice all about setting up in business here http://www.cakeflix.com/ask-david
There is so much you can claim back immediately including any courses. Good luck Helen!

My understanding is that if you register for VAT then you wouldn’t charge VAT on your cakes, as they are zero rated, but you would need to charge VAT on the parties and the classes, which would increase the cost for your customers. I’m no expert though!