Do I need to register for VAT?
The threshold, the rolling twelve-month test, and when registering early makes sense.
Hannah Okafor
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5 min read
Key takeaways
- Register once taxable turnover passes £90,000 in a rolling 12 months
- You have 30 days to register after crossing the threshold
- Voluntary registration can make sense if your customers are VAT-registered
- The Flat Rate Scheme can simplify returns for small businesses
The threshold
You must register when your VAT-taxable turnover over any rolling twelve months goes over £90,000, or when you expect it to in the next thirty days alone.
The rolling test
It isn’t your tax year or your company year: check the last twelve months at the end of every month. This is where most people get caught.
Registering early
If your customers are VAT-registered businesses, registering voluntarily can let you reclaim VAT on costs without making you dearer.
The service behind this guide
VAT returns & Making Tax Digital
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