When do I register for VAT?

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The UK VAT threshold for registration for 2016/17 is £83,000 (from April 2016).

In simple terms what you need to do to see if you need to register for VAT is:

Firstly work out what your VAT taxable turnover is, this will enable you to see if you have tripped the VAT threshold.

This is the value of all the things that you sell that are not exempt from VAT.

You must become VAT registered with HMRC if your VAT taxable turnover goes over the current registration VAT threshold in a rolling 12-month period £83,000 for 16/17 being 1 April 2016 to 31 March 2017.

Remember it is a rolling 12 month period you are looking at so you need to assess it each month for the previous 12 months. This is a good example of why it’s important to use an accounting / book-keeping system to keep on top of your income and expenses

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If you have gone over the VAT registration threshold you need to register online with HMRC or speak with your accountant so they can deal with it on your behalf. HMRC will send you your VAT certificate with your VAT registration number.

It is really important to keep on top of your registration threshold position because if you end up registering late for VAT you will potentially be charged penalties for late registration.

Also consider the VAT Flat Rate Scheme? You might be able to make more profit than on the standard scheme – so call me to find out!






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