§ Guide

Do you need to register for VAT?

Value Added Tax Act 1994

When this applies

You likely need to register for VAT. Registration is mandatory once VAT-taxable turnover passes £90,000 in any rolling 12-month period, or as soon as you expect to pass it within the next 30 days. Once registered you must charge VAT, file returns digitally under Making Tax Digital, and can reclaim VAT on purchases.

When it does not apply

Below the £90,000 threshold VAT registration is not required. Keep checking your rolling 12-month turnover at each month end, the test is not your accounting year. Voluntary registration is possible and can make sense if your customers are VAT-registered businesses.

What is at stake

Late registration penalties of 5% of the VAT owed (up to 9 months late), 10% (9 to 18 months) or 15% (over 18 months), with a £50 minimum. You must also account for VAT on all sales back to the date you should have registered, even though you did not charge it to customers at the time.

What to do

Check your rolling 12-month VAT-taxable turnover at the end of every month. If it passed £90,000, register with HMRC within 30 days of the end of that month. Register immediately if you expect to pass £90,000 in the next 30 days alone. Registration is at gov.uk/register-for-vat.

Reviewed: 2026-07-10  ·  Source: official guidance