When should you register for VAT?
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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Accounting
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).
Tax
Tax compliance takes time and isn’t always clear; that’s why we handle the numbers so that you can focus on your business growth. We’re here to help.
Accounting
As ICAEW chartered accountants, we always offer the highest accounting standards. We’re experts at what we do, and we’re dedicated to saving your business time and money.
