You must register for VAT in the UK once your VAT-taxable turnover goes over £90,000 in any rolling 12-month period — or if you expect to pass it within the next 30 days. Registration is done online with HMRC, and once registered you charge VAT on your sales, reclaim it on purchases, and file returns (digitally, under Making Tax Digital). You can also register voluntarily below the threshold, which sometimes makes sense.
The compulsory threshold
The registration threshold is £90,000 of VAT-taxable turnover. Two tests trigger it:
- Backward look: your turnover over the last rolling 12 months exceeds £90,000. You must register within 30 days of the end of the month you went over.
- Forward look: you expect to exceed £90,000 in the next 30 days alone. You must register by the end of that 30-day period.
"VAT-taxable turnover" means everything you sell that isn't exempt — not just profit. Miss the deadline and HMRC can charge a penalty plus the VAT you should have collected.
When voluntary registration is worth it
You can register before you hit £90,000. It can pay off if:
- Your customers are VAT-registered businesses — they reclaim the VAT you charge, so it doesn't cost them, and you reclaim VAT on your own costs.
- You have significant VATable expenses or startup costs — you can reclaim that VAT.
- You want to look established — being VAT-registered can signal scale.
It's usually not worth it if you sell mainly to consumers who can't reclaim VAT, as your prices effectively rise by 20%.
How registration works
- Register online through your HMRC business tax account (or we do it for you).
- Choose a scheme — standard, Flat Rate, cash accounting or annual accounting — the right one depends on your margins and cash flow.
- Get your VAT number and start charging VAT from your effective date.
- File MTD-compliant VAT returns (usually quarterly) using compatible software.
Choosing the wrong scheme is a common, costly mistake — the Flat Rate Scheme in particular suits some businesses and hurts others.
We handle VAT registration, pick the scheme that actually fits your numbers, and file every return on time. Book a free consultation if you're approaching the threshold or unsure whether to register.
This article is general information, not personal tax advice. The threshold and rules can change — check the current position with HMRC or speak to us.