When you must register
HMRC guidelines state that you must register for VAT if:
you expect your VAT taxable turnover to be more than £85,000 in the next 30-day period
your business had a VAT taxable turnover of more than £85,000 over the last 12 months
You might also need to register in some other cases, depending on the kinds of goods or services you sell and where you sell them.
Note that the 12 months talked about is any rolling 12 month period, it is not based on financial, calendar or tax years - therefore if you are approaching the limit, or have higher than usual sales in a specific month, then continuous monitoring is required.
When you may chose to register
There are some circumstances where you may chose to register voluntarily even if you are below the threshold. These can include:
if you make mostly zero rates sales
all your customers are themselves VAT registered
to reclaim VAT on a significant purchase
However all these circumstances will require specific advice depending on your circumstances and future plans, so please speak to your adviser before diving in.
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