I have a small business - when do I need to register for VAT?
VAT is triggered by turnover, not profits. You must register:
- at the end of the month in which the value of your supplies in the past 12 months has exceeded £70,000
- as soon as you expect the value of your supplies in the next 30 days to exceed £70,000
You will not have to register if you can satisfy Customs that your taxable turnover in the next 12 months will not exceed £68,000. In some circumstances, it may be beneficial to register before it is compulsory to do so. This would apply, for example, where you are incurring substantial VAT on your purchases, which is only recoverable once registered. In many cases being VAT registered gives a new business credibility in the eyes of their customers.
Contact us
To discuss registering for VAT, please contact a member of our Tax team or send us an enquiry online.
