VAT Registration Threshold
In the UK, you need to register for VAT if your taxable turnover is over £90,000 in a 12-month period, or if you expect your turnover to reach that amount in the next 30 days. Even if your turnover is lower, you can register voluntarily. Once registered, you'll need to charge VAT on your sales, submit regular VAT returns, and may be able to reclaim VAT on your business expenses.
Taxable turnover is the total value of everything you sell that is not VAT exempt or ‘out of scope’ goods and services.
It also includes:
zero-rated goods
reduced-rated goods
standard-rated goods
goods you hired or loaned to customers
business goods used for personal reasons
goods you bartered, part-exchanged or gave as gifts
services you received from businesses in other countries that you had to ‘reverse charge’
goods and services which are subject to the ‘domestic reverse charge’
building work over £100,000 your business did for itself
For more details or guidance on registering for VAT, feel free to contact us!
