If your business is creeping towards the VAT registration threshold then it is a good idea to inform your clients via an email or letter explaining this. Below is an example email which can be adapted into a letter to send to your clients to inform them of this change:

“Dear xxx,

I trust you are well.

Thanks to great clients like yourselves, BUSINESS NAME have had our best year in business yet. Unfortunately, this does mean we have to register for VAT, and as you know, that means we will have to add 20% VAT to our invoices once we have registered. The registration date is DATE.

The introduction of VAT will not have any financial effect (other than cashflow) on VAT registered businesses because the VAT is paid then reclaimed. The VAT implementation will affect mainly anyone who is not VAT registered.  

Although adding VAT will mean you pay more, we want to help you so we are introducing a variety of payment plans. EXPLAIN PAYMENT PLANS

If you wish to beat the VAT increase entirely then you have until now and DATE OF REGISTRATION TO INVOICE AND DO SAID WORK ETC.

It has been through your continued support as a valued client that has helped our growth, and we look forward to being able to continually provide the excellent level of service you have come to enjoy.

Like always, if you have any questions, please do not hesitate to ask.


Kind regards






If you would like to know more about VAT and how Together We Count Limited can help your business, please get in contact.

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