Should you be registered for VAT?

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If your turnover is more than the VAT threshold (currently £77,000) you’ll normally have to register for VAT.

Even if your turnover’s below the threshold it might benefit your business to register voluntarily. If you have an accountant they will be able to advise you, or you can ring HMRC VAT Helpline by following the link below.

  • VAT Helpline

Or read the guides below to find out more.

  • When to register for VAT - interactive tool from Business Link
  • VAT - introduction to VAT: what is VAT, how VAT works and different rates

The threshold changes - usually once a year announced in the Budget - so you should regularly check your turnover against the current threshold.

You must also register for VAT if either of the following applies:

  • you think your VAT taxable turnover may go over the threshold in the next 30 days alone
  • you take over a VAT-registered business as a going concern

Failure to register at the correct date will ALWAYS result in penalties and interest, as well as HMRC calculating your back dated income if your records are not available.

Surely it is better to avoid penalties, to be in charge of your declared income and to be able to recover tax on your business expenses as a VAT registered business.