VAT can be an extremely complex subject, but the basics are that any business making taxable supplies has to register when their turnover reaches £70,000. Under this figure, it may be beneficial to get a voluntary registration depending whether you are likely to be selling to other VAT registered businesses or to the public. There are also various schemes such as the Flat Rate scheme to simplify the VAT calculation and these can also give a profit to some businesses dependant on the industry sector and the level and type of expenses.