When do you need to register for VAT?
You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12-month period. Rolling means any 12 months in a row, not only the tax year or calendar year.
The two tests
The first test looks back: add up your taxable turnover for the last 12 months, every month. The second looks forward: if you expect your turnover in the next 30 days alone to go over £90,000, you must register straight away. This calculator checks both.
What counts as taxable turnover?
Standard, reduced and zero-rated sales count. Exempt sales and sales outside the scope of VAT do not. If you are not sure how a sale is treated, check with HMRC or an accountant.
After you cross the line
You have 30 days to tell HMRC, and your registration usually starts from the first day of the second month after you crossed the threshold. You can register voluntarily below the threshold, which some businesses do to reclaim VAT on costs. You can ask to deregister if your turnover falls below £88,000.
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