VAT Registration

Q. When do I need to register for VAT?

A. Changes have been made to the April 2010 edition of VAT Notice 700/1: Should I be registered for VAT? to reflect:

• The introduction of a new online system for registering for VAT; and
• The removal of the VAT registration threshold for non-established taxable persons

Very broadly, you need to register for VAT if your annual turnover reaches the current annual registration threshold limit (£83,000 for 2016/17). This threshold operates on a month-by-month basis, so you need to check at the end of each month to make sure that you haven’t gone over the limit in the previous 12 months. You also need to think about whether you’re going to go over that limit in the following 12 months. If you think you may, you probably need to register.

You can register for VAT even if your turnover is below the threshold and you may actually save tax by doing so, particularly if your main clients or customers are organisations that can reclaim VAT themselves.

You must register with HMRC within 30 days of being aware that you’re going to exceed the threshold. See the gov.uk website at https://www.gov.uk/vat-registration for further information on registration.