Be clear about the impact of VAT on growing your business turnover. Make sure your business plan looks at how you will deal with the impact of registering for VAT. For example, if you provide services to members of the public, registering for VAT may have major implications for your pricing structure.

If you do register for VAT, Customs wants to work with you to help make the process as simple as possible. Apply to register in plenty of time so that you have your VAT number when you need it. There are a number of schemes to make dealing with VAT easier. For example, the "cash accounting" scheme means that you only pay the VAT to Customs after you have been paid by your customer.

The "Flat Rate Scheme" can help reduce the time spent on VAT bookkeeping. When you register always ask what schemes are available to make paying your VAT easier.

Good bookkeeping is a vital part of good overall business management. Keep your books updated or it will be a major headache sorting them out months later. Always check documents you receive, for example, you must have a "VAT invoice" to claim back VAT – a "statement" is not a proper invoice. Always enter cash receipts in your books before using the cash to make purchases.

Many businesses take advantage of the VAT they’ve collected, making it work for them before it has to be paid to Customs. This can help reduce a business’s borrowing requirements and save you interest charges. But this has to be managed carefully, perhaps in a separate bank account. The VAT you have collected, less what you can reclaim, belongs to Customs and will have to be available to pay Customs when your Return is due.

The golden rule is – if you’re not sure ask. Your bookkeeper/accountant would much rather be asked any number of questions than for you to make a mistake because you’re not sure what to do. It is in the interests of both of you to get things right from the start, if you’re in doubt – shout! It will save time and money in the long term!