Thanks Sue. I have been trying to work out whether i need to register as a business before I receive the invoice for the work. The hmrc website states that you can reclaim VAT from before you registered for VAT but doesn't specify whether you need to be registered as a business when the purchases are made. It would make sense that people need to spend on set up costs before being able to trade. I'm feeling the pressure as obviously the contractor would like to invoice me but is holding off until I get either business/VAT registered. If he can bill me without me having to register for either yet then that would be good.