Vat registration rules

You have to register for VAT if your business turnover exceeds £79,000 (or just £1 if you are trading in the UK but do not have a UK base).

This applies per trader, not per line of business i.e. Sole trader, partnership or Company.

VAT Registration Rules

The test is first applied to future turnover i.e. expected turnover in the next 30 days. If the limit is exceeded under this test then you need to register for VAT immediately.

The test is secondly applied to turnover in the last 12 calendar months i.e. the 12 month ended last month. If the limit is exceeded under this test then you need to register for VAT by 1st of the next month.

Penalties for late registration are based on the VAT bill for the period between when you should have been registered fort VAT and when you did register.

We are very happy to help you assess your income to see when you go over the VAT registration threshold and, if needed, then help you register.

We are also happy to help discuss strategies for staying below the threshold.

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