When must you register for VAT in the UK?
The taxable turnover threshold, the two tests and the 30-day deadline.
You must register for VAT when your total taxable turnover for the last 12 months goes over £90,000. You must also register if you expect it to go over £90,000 in the next 30 days alone. Taxable turnover means sales that are standard, reduced or zero-rated. You can also register voluntarily below the threshold. After registration you charge VAT on your sales and issue VAT invoices.
- Registration threshold: £90,000 taxable turnover over the last 12 months.
- Forward look: register if you expect to exceed £90,000 in the next 30 days.
- Deadline: 30 days from the end of the month in which you went over the threshold.
- Voluntary registration is possible below the threshold.
How it works
At the end of each month, add up your taxable turnover for the last 12 months. Include zero-rated sales, because they count as taxable.
If the total is over £90,000, you have 30 days from the end of that month to register with HMRC.
Separately, ask whether you will go over £90,000 in the next 30 days. If you will, register by the end of that 30-day period.
Registration takes effect from the first day of the second month after you went over the threshold. If you registered on the forward look, it takes effect from the date you realised.
From that date, charge VAT on sales, issue VAT invoices and use the VAT number HMRC gives you.
Legal references
- GOV.UK, Register for VAT (when to register).
- Value Added Tax Act 1994, Schedule 1 (liability to be registered).
- HMRC VAT Notice 700/1, Should I be registered for VAT?
Frequently asked questions
What happens if I register late?
You owe VAT on sales made since the date you should have been registered, and HMRC may charge penalties. You may have to pay that VAT out of your own pocket if you did not add it to your prices.
Do zero-rated sales count towards the threshold?
Yes. Taxable turnover includes zero-rated sales. Exempt sales are treated differently, so check the guidance for your business.
Should I register voluntarily?
It can let you reclaim VAT on business costs, but you must then charge VAT to customers. Ask an accountant whether it suits your customers, especially if they are consumers who cannot reclaim VAT.
Does 4invoices register me for VAT?
No. You register with HMRC yourself. 4invoices does not track your turnover or file returns. Once you have a VAT number, you can create invoices with a VAT rate per line and download them as PDFs.