VAT Registration Guide (UK)

Registering for VAT is mainly about your taxable turnover, your customers, and whether VAT will help (or hurt) your pricing and cashflow. Here’s a clear step-by-step guide.

When you must register for VAT

You must register if either:

your total taxable turnover for the last 12 months goes over £90,000, or
you expect your taxable turnover to go over £90,000 in the next 30 days.

The “rolling 12-month” rule (most common)

At the end of each month, check your total taxable turnover for the previous 12 months. If it goes over £90,000:

you normally need to register within 30 days of the end of that month.
Your VAT Registration usually starts from the firstday of the second month after you crossed the threshold.

The “next 30 days” rule (big contract / sudden growth)

If you expect turnover to exceed £90,000 in the next 30 days alone (for example due to a major contract) you must register immediately. Your registration date is usually the date you realised this would happen.

If you’re unsure whether you need to register, we can review your turnover, business type and pricing structure with you

What counts as “taxable turnover”

Taxable turnover is the total value of sales that count towards the VAT threshold. This usually includes:

standard-rated sales
reduced-rated sales
zero-rated sales

It does not usually include VAT-exempt income or genuinely out-of-scope income.

Some less common transactions can also count towards the threshold, so if you’re unsure, it’s worth checking before assuming you don’t need to register.

Voluntary VAT registration (even under £90,000)

You can choose to register for VAT even if turnover is below £90,000

Voluntary VAT registration can work well if:

your customers are mainly VAT-registered businesses
you have significant VAT on costs you want to reclaim
being VAT registered helps your business appear more established

It may be less helpful if:

you mainly sell to the public
your business has very low VATable costs
you want to keep admin to an absolute minimum

How to register for VAT (what you’ll need)

Don't worry if you don't have everything to hand - most missing details can be sorted during the application process

If you’re a limited company, you’ll usually need:

Company Registration Number
UTR (Unique Taxpayer Reference)
Business bank account details
Estimated turnover figures
Details of your business activities

If you’re a sole trader or partnership, you’ll usually need:

National Insurance number
UTR (if registered for Self Assessment)
ID (such as passport or driving licence)
Bank account details
Estimated turnover figures

Can I avoid registering if I only go over temporarily?

Possibly. If you briefly go over the VAT threshold but expect turnover to fall back below it soon, HMRC may allow an exemption from VAT registration.

You’ll need to explain why the increase was temporary and provide evidence to support it.

What happens after you register?

Once your VAT registration has been approved, HMRC will send you:

your VAT number
you VAT registration date
details of your first VAT return and payment deadlines

You’ll also be signed up for Making Tax Digital (MTD) for VAT meaning VAT returns must be submitted through compatible software.

While you’re waiting for your VAT number

You normally can’t show VAT separately on invoices until your VAT number arrives.

However, if your VAT registration has an effective start date, you may still need to account for VAT from that date once your registration is approved.

Many businesses keep this simple by:

temporarily holding invoices back, or
reissuing invoices once the VAT number arrives

VAT deregistration threshold

If your taxable turnover falls and is expected it to stay below the deregistration threshold, you may be able to cancel your VAT registration.

The VAT deregistration threshold is currently £88,000.

Quick VAT registration checklist

Check your rolling 12-month taxable turnover regularly
Register within 30 days if you exceed the £90,000 threshold
Register immediately if you expect to exceed £90,000 in the next 30 days
Gather key details (UTR, company number, bank details, turnover estimate)
Decide whether voluntary registration makes sense for your business
Put a simple bookkeeping process in place so VAT returns stay accurate and stress-free