Do I need to register for VAT?

You must register for Value Added Tax if your VAT taxable turnover goes over the Government set threshold, or if you know that it will. The threshold currently stands at £85,000.

VAT taxable turnover is made up of any goods or services sold that are not VAT exempt.

If you have VAT taxable turnover of more than £85,000 over the last 12 months you must register within 30 days of the end of the month in which the threshold was breached.

You should monitor your 12-month rolling turnover at the end of every month if you are approaching the threshold, and not just check annually at year end.

If you expect to breach the £85,000 limit in the next 30 days, you must register for VAT by the end of that 30-day period.

You can also register voluntarily.

Once you have registered, you will charge your clients VAT (currently 20%) on top of your price/fees.

Under Making Tax Digital (MTD) for VAT you must keep certain VAT records electronically (unless you apply for exemption) and we can give you advice on, and supply, suitable electronic bookkeeping software.

Please contact us if you think you may need to register for VAT.

Can I cancel my VAT registration?

If you stop making VAT taxable supplies or your turnover falls below £83,000 (the deregistration threshold is lower than the registration threshold), you can apply to HMRC to have your VAT registration cancelled.