Simplified tax or VAT? How to choose
19 August 2026
· 1 min
The choice depends less on turnover than on who your customers are.
This is the first question when setting up a company. The answer is often wrong because people look only at turnover.
The real test
Who are your customers? If they are VAT-registered, they expect a VAT invoice from you. Staying on the simplified regime makes you a less attractive supplier.
Your cost base
If most of your costs carry VAT, registering works in your favour — you reclaim what you pay.
Complexity
VAT means more documents and closer bookkeeping. The service fee is higher too.
Write to us before you decide — an hour of consultation is enough to work it out.