Do I need to be VAT registered?
15/10/24
Do you have taxable income? Have you gone over the VAT threshold? When do I need to register for VAT? If these are some of the questions you are currently asking yourself, read on below to find out the answers!
1
Calculate your taxable income
2
Review this for the last 12 months
3
Does this go over £90,000?
How it works
It is good practice to continually calculate and review your taxable income for the previous 12 months of trading, especially if you think you are nearing the £90,000 VAT threshold.
There are a few instances where taxable income is disregarded, meaning you must register if they apply. These are as follows: you are based outside the UK, your business is based outside the UK or you supply services or goods to the UK.
You can choose voluntary registration if your turnover is less than £90,000.
1
Taxable income
This is the total revenue that you have that is not exempt for VAT or is outside the scope of VAT. Visit the HMRC website here to see if your income is liable for VAT.
2
Review
You need to use your taxable income and apply a 12 month rolling calculation; giving you a total for the year.
3
VAT threshold
If your turnover goes over the VAT threshold of £90,000 in any 12 month period, you will need to register for VAT.
When do you need to register by?
If you do go over the VAT threshold, you will need to register for VAT with HMRC within 30 days of the end of the month that you went over the threshold. You will be provided with a date of registration, which will be the first day of the second month after you go over the threshold.
If you need any help in registering, we are able to do this on your behalf. Just send us an email to [email protected] or give us a call and we will be more than happy to help.