Use the flat rate VAT scheme
This might not only save you in money terms but it could also save you hours of admin work (and time is money!).
The way the Flat Rate scheme works is that HMRC give you a flat rate VAT percentage that you multiply by your gross turnover every quarter.
The flat rate percentage is different for every particular type of business.
*Recommended for a small business
Don't register too early
Finally if you do have to register for VAT (and you’re dealing generally with the public) it’s usually wise not to register too early.
In most cases a trader only becomes liable to register for VAT if the value of his cumulative taxable supplies exceeds the VAT threshold.
You can however still claim back for up to six months from date of registration for VAT you’ve paid on services and for three years for stock or equipment you’ve purchased.
Your first VAT return will then often result in a payment from HMRC to you.