Estimated reading time: 3 minutes
Introduction
Registering for Value Added Tax (VAT) is an important milestone for many businesses. Whether you’ve reached the compulsory registration threshold or are considering registering voluntarily, understanding the rules can help you stay compliant and avoid unexpected costs.
This guide explains when you need to register, what information you’ll need, and what happens once your application has been approved.
When Do You Need to Register for VAT?
HMRC requires businesses to register for VAT in certain circumstances.
- Your VAT taxable turnover exceeds £90,000 over a rolling 12-month period.
- You expect your VAT taxable turnover to exceed £90,000 within the next 30 days alone.
- You are based outside the UK but make taxable supplies in the UK (special rules apply).
The £90,000 threshold is measured on a rolling 12-month basis, not by the tax year or your accounting year.
What Counts as VAT Taxable Turnover?
VAT taxable turnover includes the value of most goods and services your business sells that are subject to VAT.
- Standard-rated supplies.
- Reduced-rated supplies.
- Zero-rated supplies.
Certain exempt supplies are not included when calculating your taxable turnover.
Can You Register Voluntarily?
Yes. Some businesses choose to register even if they are below the compulsory threshold.
- Your customers are mainly VAT-registered businesses.
- You incur significant VAT on business purchases.
- You want to reclaim VAT on eligible expenses.
- You expect your turnover to grow beyond the threshold.
How Do You Register?
Most businesses register online through HMRC. They will need the following information to do so:
- Unique Taxpayer Reference (UTR).
- Business bank account details.
- Business activity details.
- Annual turnover.
- Company registration details (if applicable).
What Happens After Registration?
- You will receive your 9-digit VAT registration number alongside your effective date of registration.
- If you have not already done so, you should create a government gateway account and register for access to VAT online services.
Most VAT-registered businesses must also comply with Making Tax Digital for VAT requirements.
Why Registering on Time Matters
Failing to register when required can result in HMRC charging VAT from the date registration should have taken effect. Penalties and interest may also apply.
How We Can Help
We can advise whether you need to register, complete your VAT registration, recommend the most suitable VAT scheme, help you implement compatible accounting software and ensure your VAT Returns are submitted accurately and on time.
Further Reading (HMRC)
- Register for VAT – https://www.gov.uk/register-for-vat
- How to register for VAT – https://www.gov.uk/register-for-vat/how-register-for-vat
- Register for VAT by post – https://www.gov.uk/guidance/register-for-vat
- VAT Notice 700/1: Who should register for VAT – https://www.gov.uk/government/publications/vat-notice-7001-should-i-be-registered-for-vat/vat-notice-7001-should-i-be-registered-for-vat
- VAT guidance – https://www.gov.uk/browse/tax/vat
Disclaimer
This article is intended as general guidance only and is based on HMRC guidance available at the time of writing. Tax legislation and HMRC guidance may change, and individual circumstances differ. Please contact us if you require advice specific to your situation.
Last reviewed: July 2026
