Check whether you have to register
Details to have ready
Once you have your VAT number
Two tests, two deadlines
HMRC applies a rolling 12-month test and a 30-day forward test. Under the 12-month test you have 30 days from the end of the month you went over £90,000 to register, and your effective date is the first day of the second month after you crossed it. Under the forward test you register by the end of the 30-day period, and your effective date is the day you realised you'd go over, not the day you did.
You owe HMRC any VAT due from your effective date, even if your number hasn't arrived yet. You can't show VAT on invoices until it does, but HMRC says you can raise your prices to cover the VAT you'll have to pay.
Online, or VAT1 by post
Most businesses register online. The paper VAT1 is only for cases HMRC can't handle online, and you must use a form HMRC sends you; some situations need an extra form posted alongside it. HMRC signs newly registered businesses up for Making Tax Digital for VAT unless they're exempt.
Related
What else will you need?
- VAT1VAT1 VAT registrationVAT1 is HMRC's paper application to register for VAT.
- Where to find itFind your VAT numberA UK VAT registration number is a 9-digit number HMRC sends by post when you register for VAT.
- TemplateInvoice templateAn invoice must show a unique number, your business name and address, the customer's name and address, a description of what you supplied, the supply and invoice dates, and the total owed.PDFWordExcel
- VAT2VAT2 partnership detailsVAT2 is the HMRC form that gives the details of each partner in a VAT-registered partnership.
- ChecklistStarting as a sole trader checklistTo start as a sole trader, choose a business name, keep records of income and expenses from your first sale, and register for Self Assessment once you earn more than £1,000 in a tax year.PDF
Rather we did it?
Countify can handle this for you, for a fixed fee agreed upfront.
Questions
Frequently asked questions.
Is the VAT threshold based on the tax year?
No. HMRC looks at your taxable turnover over any rolling 12-month period, plus whether you expect to go over the threshold in the next 30 days on their own.
Can I charge VAT before my VAT number arrives?
You can't show VAT on invoices until you have the number, but you still owe VAT from your effective date. HMRC says you can increase your prices to cover it.
Can I register for VAT voluntarily?
Yes. You can register below the threshold, for example to reclaim VAT on costs. Once registered you charge VAT and file VAT Returns like any other registered business.
How long do I keep VAT records?
Generally at least 6 years. Records you also use for other taxes may need to be kept longer.
Checked against GOV.UK on · Reviewed by Kamran Ishaq FCCA, Founder & CEO, on .
Sources: Register for VAT: when to register (opens in a new tab) (HM Revenue & Customs); Register for VAT: how to register (opens in a new tab) (HM Revenue & Customs); Register for VAT by post (VAT1) (opens in a new tab) (HM Revenue & Customs); Record keeping for VAT (VAT Notice 700/21) (opens in a new tab) (HM Revenue & Customs); Invoices: what they must include (opens in a new tab) (GOV.UK).