You don't have to be earning the VAT threshold to go VAT registered as far as I know. The threshold is 83k this year but you can chose when to go VAT registered.
If you are dealing with VAT registered companies they prefer to deal with VAT registered companies. It will also help when he buys new equipment/van as he can claim the VAT back.
Downside is the controls he needs to put in place to ensure he is paying the right amount of VAT and could be open to VAT inspections.
These are all time consuming and expensive as you generally have to pay an accountant extra to do it for you.
There are pros and cons to everything; what suits Ian may not suit me with a different customer base. He sold most of his residential and has the courage to go commercial - I don't.
Good for you Ian - much respect.
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