When should you register for VAT?

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When you must register for VAT

The taxable turnover threshold which determines whether businesses should be registered for VAT, is currently £85,000 (January 2023).

The taxable turnover threshold that determines whether businesses can apply for deregistration is £83,000.

It was confirmed in the Autumn Statement 2022 measures that the taxable turnover registration and deregistration thresholds will be frozen at the current rates until 31 March 2026.

Businesses are required to register for VAT if they meet either of the following two conditions:

  • 01

    At the end of any month, the value of the taxable supplies made in the past 12 months or less has exceeded £85,000; or

  • 02

    At any time, there are reasonable grounds for believing that the value of taxable supplies to be made in the next 30 days alone will exceed £85,000.

    VAT Penalty Charges

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The registration threshold for relevant acquisitions from other EU Member States into Northern Ireland is also £85,000.

Businesses with no physical presence in the UK may also have a liability to be VAT registered in the UK if they supply any goods or services to the UK (or are expected to in the next 30-days).

If you would like assistance with VAT, get in touch with us today.

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