Film production company question.

[Runrunshaw]

When you start a film production company in the UK do you absolutely HAVE to register for VAT ? And if so , why ? Sorry if i sound dumb here but its something i must know.

Input from people who run their own film production companies is most welcome .

Thanks.

[miker]

No, you do not. But then you will have to pay VAT on things you buy for the biz, you will not be able to reclaim it.

When I was VAT registered the mandatory registration turnover limit was ?50,000 (could be higher now). So, if you think your business will turnover ?50K per annum then legally you must register for VAT anyway.

[assyrix]

My film production company makes a loss so I mainly use it as a tax break to offset taxes I pay from my higher rate earnings against the losses for buying equipment, wining and dining scriptwriters/actors etc. racked up in my limited company.