VAT as a "new house" builder

[sean glossop]

im sure this has been answered before so i apologize in advance.

I have recently started a small construction business and wish to know if i can or should voluntary register for VAT, we are employed almost solely in the erection of new build timber houses so therefor VAT free, also in the repair of a listed building also Vat free as far as i can tell. so my question is this, i cannot see that i would have to charge VAT at present so would solely have business expense reclaims (petrol, tools, materials on the listed building, leasing of vehicle etc.) i will be under the vat threshold for the present time, other than adding another layer of paper work to a new business i cannot see a downside only a gain or is there a criteria for voluntary registration that i am missing.
I realize any work undertaken on non qualifying jobs would involve us having to charge VAT on our labour, but the intention is to stay within the new house build sector.

Sean.

[pawncob]

They must be very cheap houses if you're under £68k turnover, so registration is probably necessary.

[sean glossop]

To be involved in one aspect of a house build does not make it a cheap house!
as a new business, turnover is not automatically £68,000 overnight, i wish it was!
my question, is that i cant see a down side to voluntary registration when all i would have is VAT reclaims or am i missing something?

Sean.

[spidersong]

If you've got your liabilities right then you're correct there is little downside to a voluntary registration as a zero rated business.

The only possibles are if your work style changes, or if the listed building work is repair rather than alteration, and you then make standard rated supplies, but even then if below the threshold you could always deregister as there's no minimum registration length. (Although if you do, make sure your assets you've reclaimed VAT on are worth less than around £6700 if you don't then you could have to repay some VAT based on the current market value)

[sean glossop]

Spidersong,
Many thanks that was concise and what i was looking for, you also answered another question about repairs on a listed building.
Thank you.
Sean.