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I’m not vat registered myself and don’t advertise this fact, all my invoices and quotes state vat at 0% and have no problems with the increase of vat but will add the extra 2.5% in my pricing.
As for attracting the wrong type of "customer" when they discover your not vat registered is not a problem for me as long as they pay up.. after all their money is just as good as anyone Else’s