You must register for VAT when your VAT taxable turnover goes over £90,000. The test looks at any rolling 12-month period, not your accounting year.
The two tests
- Looking back: turnover in the last 12 months is over £90,000. Register within 30 days of the end of the month you went over.
- Looking forward: you expect to go over £90,000 in the next 30 days alone. Register by the end of that 30-day period.
Registering voluntarily
Registering below the threshold can make sense if most customers are VAT registered businesses, or if you have large start-up costs to reclaim.
How we help
- Monitoring your turnover against the threshold
- Choosing between standard, Flat Rate and Cash Accounting schemes
- Registration and quarterly returns through MTD software