VAT Registration

VAT Registration

When do I need to register?…..How do I register?

When do I need to register for VAT?

You must register for VAT where at least one of the following conditions is satisfied:

  • At the end of the calendar month, the value of taxable supplies for the 12-month period ending at that time (or period of less than 12 months since starting the business) has exceeded £85,000.
If you meet this condition, you must register for VAT within 30 days of the end of the month. You are then registered with effect from the first day of the next but one month, or an earlier date agreed with HMRC.


Between 1 July 2022 and 30 June 2023 your VAT taxable turnover is £100,000. That’s the first time it has gone over the VAT threshold. You must register by 30 July 2023. Your effective date of registration is 1 August 2023.

  • If you expect that the value of taxable supplies for the next 30 days will exceed £85,000.
Where you meet this condition, you must register for VAT before the end of the 30-day period. You are then registered from the beginning of that period.


On 1 May, you arrange a £100,000 contract to provide services. You’ll be paid at the end of May. You must register by 30 May. Your effective date of registration will be 1 May.


The term ‘taxable supplies’ includes supplies that would be taxed at the standard rate, the reduced-rate or the zero-rate. Exempt supplies (e.g. financial services, certain property transactions, insurance, health, education) can be ignored when calculating the VAT registration threshold.

Can I register if my turnover is below £85,000?

Yes…… you  can voluntarily register for VAT. You may do this for a number of reasons, including:

  • if registration is inevitable at some stage, early registration avoids the need to monitor turnover regularly;
  • avoiding a penalty for late registration.
  • having a VAT registration number can be important as a matter of image; and
  • being able to recover VAT on certain costs. A person making supplies to taxable persons, who can recover any VAT charged, usually seek registration, so as to recover input tax on costs such as start-up costs.

However, there may be good reason for not registering for VAT, including:

  • It increases prices which is a problem if customer cannot recover it; and
  • You must submit VAT returns, which is an admin burden and can come with additional costs.

How do I register?

Registration may be made online via

You need a Government Gateway user ID and password to register for VAT. If you do not already have a user ID you can create one when you sign in for the first time.

As Agent I can also register you on your behalf.

What else do I need to consider about VAT?

There are several other things to consider which I cover in a number of other blogs:

  • What VAT schemes are available?
  • What is Making Tax Digital (MTD) for VAT?
  • Can I claim VAT on preregistration expenses?
Decided you need to register and need some assistance? Please get in touch.