When Should My Business Go VAT Registered?

As a company it can be a struggle to keep on top of rules and regulations. However, when you go VAT registered isn’t something that you can afford to be out of the loop on. There’s requirements you must meet as a company, and this being correct is one of them. Here we’ll tell you when to go VAT registered to ensure your business is fully compliant.


When should I register?

It’s essential that you register when you go over the threshold, or when you know that you’re about to. Your VAT taxable turnover determines this threshold. This is the total of everything sold which doesn’t fall into the VAT exempt category.


When is registration compulsory?

There are 2 instances in which it is compulsory to register for VAT. These are:


  • If your VAT taxable turnover exceeds £85,000 within 12 months




  • If you predict that you’ll cross the threshold within a period of 30 days or less


What about  businesses outside the UK?

If you, or your business, are based outside of the UK there’s no threshold. If you’re expecting to sell any products or services to the UK, you must register within 30 days.


What happens if I register late?

Within 30 days of your turnover exceeding the threshold you must have registered. If you register late, you’ll be required to pay what you owe from the when you should have registered.


Please note: Depending on how much you owe and how late your registration is, penalties can and will differ.


What about if I want to register voluntarily?

This is okay too, if your turnover is below £85,000 you can still register. From the date HMRC register you you’re responsible to pay any VAT you owe.


Are there any exceptions?

There is an option to apply for a registration exception if exceeding the threshold is temporary. You must write to HMRC showing them evidence why you think that your VAT taxable turnover won’t go over the de-registratation threshold in the next year.


There’s no guarantee with this, HMRC will consider your application for exception and respond to you confirming either way. If they disagree with your claim, they’ll automatically register you for VAT.


If you’re still confused about VAT registration and need some friendly advice, get in touch today!


Call us on 01427 613613

Email us at info@abc-accounting-services.co.uk

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