VAT Returns & Registration

For a lot of businesses, VAT starts becoming a concern before they even know whether they actually need to register.

VAT registration: what you need to know

£90,000

The current VAT registration threshold is £90,000 of VAT-taxable turnover.

The important thing to know is that this is measured over a rolling 12-month period, rather than your accounting year or the tax year.

So if your business is growing, it is worth keeping an eye on your turnover as you go.

You do not need to wait until the end of the year to check where you stand, and you do not need to work it all out on your own.

Keep an eye on the rolling 12 months

This is the bit that can catch people out.

Imagine you’re a builder and your VAT-taxable turnover over the last 12 months is £82,000. You might look at that and think you still have £8,000 before you need to think about VAT.
Then a £12,000 job comes in.
That could take your rolling 12-month turnover above the VAT registration threshold. At that point, it is simply a case of understanding when you need to register and what changes from there.

If your VAT-taxable turnover for the previous 12 months goes above £90,000, you normally need to register for VAT within 30 days of the end of the month in which you exceeded the threshold.

There is also a separate rule if you expect your VAT-taxable turnover to exceed £90,000 within the next 30 days.

Getting registered without the guesswork

If you’re getting close to the threshold, it is worth speaking to us before you cross it.

We can look at your figures with you, explain what counts towards your VAT-taxable turnover and help you understand when registration is likely to become necessary.

If you do need to register, we can help you through the process and make sure you understand what changes from that point onwards.

That includes things like:

When you need to start charging VAT

Which VAT rate applies to what you sell

What VAT you may be able to reclaim

What records you need to keep

When your VAT returns will be due

What information we’ll need from you

You don’t need to become a VAT expert.

You just need to understand what applies to your business and have someone keeping an eye on it with you.

Already VAT registered?

Once you’re registered, VAT becomes part of the regular rhythm of running the business.

We can prepare and submit your VAT returns, check that the figures make sense and help make sure everything is dealt with correctly and on time.

Where something looks unusual, we’ll ask the question rather than simply putting a number into a box.

And if you’re ever unsure about the VAT treatment of something before you invoice a customer or make a decision, you can ask us.

It’s much easier to sort something out before it happens than untangle it afterwards.

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