Do I need to register for VAT?

You must register for VAT if the turnover on taxable activities exceeds the VAT registration threshold. The VAT registration threshold from 1 April 2017 is £85,000. You must register for VAT if you meet either the past turnover test or the future turnover test:

  • Past turnover test – at the end of any calendar month, the value of taxable supplies in the last 12 months has exceeded the VAT registration threshold – notify HMRC within a month of end of month in which threshold exceeded and register from 1st of following month
  • Future turnover test – at any time, there are reasonable grounds for believing that the value of taxable supplies in the next 30 days alone will exceed the VAT registration threshold – register within 30 days of being aware from the date you realised you would exceed the threshold.

Want to discuss further?

Ross Palmer

Senior Tax Manager

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