When do I need to register for VAT?
Under law, you must register for VAT if your VAT taxable turnover goes over the registration threshold. This is currently set at £85,000. VAT taxable turnover is the total of everything sold that is not VAT exempt (a list of VAT exempt sales can be found on the HMRC website). If you’ve exceeded the threshold, or know that you will in the next 30 days, it is compulsory for you to register with HMRC or you may face a fine. You can also register for VAT voluntarily, which businesses often consider for commercial purposes.
In most cases you can register online, either directly using your Government Gateway login, or via an agent such as Ecovis. HMRC aim to get you a VAT registration certificate within 30 working days, although it can sometimes take longer than this. To register, you’ll need to provide information about your:
- Business activity
- Turnover and
- Bank account details
The process is usually fairly straight forward.
Read more on how our Business Tax and VAT services can support your business. Alternatively, please speak to a member of our VAT team. Our advisors will be happy to talk you through the process of registering for VAT and answer any questions you may have.
Ruth Potter
Further Reading
You may also find the information in these articles useful for the stage of your business
Are there any critical timing issues to consider when setting up a business in the UK?
Are there any financial audit obligations for a new UK entity?
Are there any import implications of Brexit that I need to consider?
How do I start a business in the UK?
What are the admin procedures for running a UK business payroll?
What tax registrations do I need to consider when starting up a UK business?
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