Value Added Tax in the UK?

Given that a trader is liable to be registered for VAT only if his taxable supplies exceed 73000 pounds in the UK, why would someone under this statutory limit voluntarily register for VAT?

Asked anonymously on May 6th, 2012 @ 2:08 a.m.
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By not registering your competitors and others will find out that you are turning over less than £70k a year. You may want to keep this secret from others who could explout this information. 

For example if you are dealing with a large supplier and you don;t collect VAT they may not take you that seriously, and prioritise relationships with others over you.

Answered by Steven Hemmel on May 8th, 2012 @ 3:14 p.m.