When you must register
You must register once your VAT-taxable turnover goes over the registration threshold in a rolling 12-month period, or if you expect to cross it in the next 30 days. The threshold changes over time, so check the current figure on GOV.UK before you decide — do not rely on a number you read once.
When you might register voluntarily
- You sell mainly to other VAT-registered businesses, who can reclaim the VAT.
- You want to reclaim VAT on your own purchases and setup costs.
- You want the credibility of appearing established.
- Downside: you must add VAT to prices, which can matter if you sell to consumers.
How to register
- Register online through your Government Gateway account.
- You will get a VAT number and an effective date of registration.
- Set up MTD-compatible accounting software, as VAT returns are digital.
- Start charging VAT from your registration date and keep proper records.
After you register
You add VAT to your sales, reclaim VAT on eligible purchases, and submit returns (usually quarterly) through Making Tax Digital software. Good accounting software handles the sums and the submission for you, which is why most registered businesses use one.
Frequently asked questions
What is the VAT registration threshold?+
It is a set level of VAT-taxable turnover measured on a rolling 12-month basis, and it changes over time. Always check the current threshold on GOV.UK rather than relying on a remembered figure.
Can I register before I hit the threshold?+
Yes — voluntary registration is allowed and can make sense if you sell to other VAT-registered businesses or want to reclaim VAT on purchases. Weigh it against having to add VAT to your prices.
Do I need software for VAT?+
In practice yes — VAT returns fall under Making Tax Digital, so you submit them through compatible accounting software rather than manually.