Hi,
Apologies if this question seems a bit simple, but I'm currently at the very early stages of applying for planning permission to create a furnished holiday let business, and I'm unsure on whether to register for VAT now.
There are likely to be some high capital costs on the build (£200k+), but it's highly plausible that the whole plan will fall at the first hurdle if planning is rejected. But, in the meantime, I need to pay a planning consultant that is VAT registered, design costs and architect fees. It's possible other costs are going to be incurred too before the outcome of planning is known.
I think it's likely that the business will trade in excess of the VAT registration threshold, certainly not in the first couple of years, but more likely once it's established and fully let.
Do you think I should elect for VAT now? Would this let me claim the input vat back now? I know in the long run the output VAT will result in 20% less in profit, but In my head, it seems to make sense to do this now which would help reduce my capital cost by reclaiming the input vat.
Is there anything else that I should be considering VAT wise? e.g. would the building costs be zero-rated for a furnished holiday let that's being let to tourists?
Thanks for any help,
Charlie
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