How much is the threshold before you start paying VAT?
It’s £85 000.
You want to earn more than that, though, right?
That’s the plan when you start a business. You want to build something.
If you’ve not registered for VAT, it’s time for you to stop getting in your own way and do it.
Right now, you’re not allowing yourself the opportunity to grow
One of the most exciting things about starting your own business is building it.
There’s an immense sense of satisfaction.
Seeing it grow makes you feel proud.
Now… just imagine when you retire. Do you want to look back on your life and think ‘I could have done more.’?
Regrets like this won’t surface when you register for VAT.
You’re giving yourself the permission and the freedom to grow as much as you want.
You have the chance to see how far you and your business could really go.
By staying under that upper limit, you may be depriving yourself to work with some truly stellar businesses. You could miss out on projects that make the journey truly rewarding.
You’re letting fear get the better of you
No one wants to fail in business. It’s a very real fear and I totally get that.
Registering for VAT is scary. Really scary.
It’s much easier to earn below £85 000 and remain nice and cosy in your comfort zone.
You don’t want to register for VAT but fail to break through that ‘barrier’.
That would hurt.
For me, though, there’s no such thing as failure.
There are only lessons we can learn.
Successful entrepreneurs know this, which is why they’re not afraid to try new things.
When something doesn’t work, they just rule it out and consider the failure a step closer to finding something that does work.
Once you get past your reluctance around VAT, you can try new things, too. You can invest in new tools, hire services or trial other services or products; claim the VAT back on these expenses; and reduce your VAT bill.
You need to get over your wariness around charging VAT threshold and just go for it.
It’s a target — and targets are there for us to smash them, so plan how you’re going to do this and start working towards it. Believe in yourself.
If you’re asking yourself right now, ‘Can I really do this?’, let me answer the question for you: of course!
How can you get over the fear?
Fear paralyses us. It stops us from moving forward. I don’t want that for you or your business. Neither do you, so how can you address it?
Know what you want
What do you truly want to achieve? What’s your purpose?
Fear causes us to lose sight of our vision.
Remembering our goals can get us back on track and keep the vision clear.
You’ll then be in a better position to work towards it.
Find out what’s stopping you
What’s making you afraid? In this case, is it the extra paperwork? The risk of losing customers? The fear of looking foolish?
Whatever it is, once you realise what’s behind the fear, you can address it.
Take control of the discomfort
You should own your fear — not the other way around. This means taking control of your discomfort and transforming your fear into a positive force, rather than a negative one. Use the fear to drive you forward, not hold you back.
Ask yourself ‘What’s the worst that could happen — and the best?’
When we’re afraid, we don’t think logically. Taking some time out to consider what the very worst case scenario is — and forming a plan if it arises — can put things back into perspective.
Then work out what the best-case scenario would be. Imagine that everything ran like absolute clockwork. Much better than the worst-case scenario, right?
Taking that step
The longer you hold out on registering for VAT, the longer you’re standing in your own way.
Look inside yourself and search for what’s holding you back.
Are you just afraid of being too successful?
Don’t put off registering for VAT. Don’t stall your own progress.
Show your fear who’s boss. Register.
Then get ready to grow your business.
And to be the very best you can be.