VAT registration: when you must register and how

The compulsory threshold

You must register if your VAT-taxable turnover exceeds the registration threshold in any rolling 12-month period, or you expect to exceed it in the next 30 days. Monitor your rolling turnover, not just the tax year.

Voluntary registration

If your customers are VAT-registered businesses, registering early lets you reclaim input VAT at little cost to them. If you sell to consumers, it effectively raises your prices — do the maths first.

Choosing a scheme

Standard, Cash Accounting, Flat Rate and Annual Accounting schemes each suit different businesses. The right one depends on your costs and cash flow.