When do I need to register for VAT?

Value added tax, or VAT, is something that all businesses need to be aware of, whether they’re small or large.

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.

Further Reading

You may also find the information in these articles useful for the stage of your business

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