@mobillica 148000 wrote:
…there are penalties for late registration..I know!
There are penalties for everything…late registration, late returns, incorrect returns, incorrect amounts – and a few too many of those you start getting audited…that’s where the real fun starts 
Gotta say though its a very clever form of taxation, getting Joe public to collect and document it all for you.
Just one note though if you are going down that route: a number of goods and services in the UK are VAT-exempt. It’s good to know the list and it can work to your advantage with a good accountant in tow. For example, if you write and sell some software, you don’t have to invoice VAT on the manual and training – or at least you could a few years ago…might need to check that in 2007 – but you get the gist 