I can speak with a little authority (as an ex VAT man).
It sounds like a pain now but a guy who can handle a digital studio will not have any trouble with an Excel spreadsheet. Also, if you are not VAT registered you are forking out VAT on a whole load of things. When first registered, you can claim back the VAT on any goods you have on hand when you register - going back 4 years.
You're not going to change it so why no consider the advantages of being VAT registered. I'll give answers happily, when I am certain of the facts. Do not ever make the huge mistake of listening to the man in the pub ad forming your opinions on that basis.