How to Register for VAT in the UK – A Simple Guide
Introduction
If your UK business’s taxable turnover exceeds £90,000 (2024/25 threshold), you must register for VAT. But even if you’re below this limit, voluntary registration can bring benefits—like reclaiming VAT on expenses and boosting credibility.
This guide covers:
✔ When you need to register for VAT (mandatory vs. voluntary)
✔ Step-by-step registration process (online & offline)
✔ Which VAT scheme is best for your business
✔ What to do after registering (invoicing, filing returns)
✔ Common mistakes to avoid
Who Needs to Register for VAT?
1. Mandatory Registration
You must register if:
- Your taxable turnover exceeds £90,000 in any 12-month period
- You expect turnover to exceed £90,000 in the next 30 days
- You buy goods from the EU worth over £90,000
⚠️ Late registration penalties apply if you miss the deadline (usually 30 days after exceeding the threshold).
2. Voluntary Registration
You can register even if turnover is below £90,000 if:
- You want to reclaim VAT on business expenses
- Your customers are mostly VAT-registered businesses (so they can reclaim VAT)
- It improves your business’s professional image
How to Register for VAT (Step-by-Step)
Step 1: Check if You Need to Register
- Calculate your rolling 12-month turnover (not just the last tax year).
- Include taxable sales (not exempt or out-of-scope income).
Step 2: Choose Your VAT Scheme
| Scheme | Best For | Key Features |
|---|---|---|
| Standard VAT | Most businesses | Charge 20% VAT, file quarterly returns |
| Flat Rate Scheme | Small businesses (<£150k turnover) | Pay a fixed % of turnover (simpler accounting) |
| Cash Accounting Scheme | Businesses with late payments | Pay VAT only when customers pay you |
| Annual Accounting Scheme | Businesses wanting fewer filings | One annual return + advance payments |
Step 3: Gather Required Information
You’ll need:
- Business details (name, address, nature of business)
- Turnover figures
- Bank account details
- Unique Taxpayer Reference (UTR)
- Company registration number (if incorporated)
Step 4: Register Online (Fastest Method)
- Go to HMRC’s VAT registration portal (gov.uk/register-for-vat).
- Create a Government Gateway account (if you don’t have one).
- Fill in the form (takes ~20 minutes).
- Submit and wait for your VAT number (usually 1-2 weeks, but can take longer).
📌 Alternative: Register by post (Form VAT1) if you can’t do it online.
Step 5: Receive Your VAT Certificate
Once approved, HMRC will send:
- Your VAT registration number (to display on invoices)
- Your first VAT return deadline
- Information on Making Tax Digital (MTD) compliance
What to Do After Registering
✅ Charge VAT correctly (20% standard rate, unless reduced/zero-rated).
✅ Keep digital records (MTD-compliant software like Xero/QuickBooks).
✅ Submit VAT returns quarterly (or annually if on Annual Accounting).
✅ Reclaim VAT on eligible business expenses.
Common VAT Registration Mistakes
❌ Missing the deadline → Penalties up to 100% of owed VAT.
❌ Choosing the wrong scheme → Could overpay VAT.
❌ Not keeping proper records → Risk of HMRC fines.
❌ Forgetting to update invoices → Must show VAT number post-registration.
Need Help with VAT Registration?
At Books 2 Balance Ltd, we handle VAT registrations, scheme selection, and returns—so you stay compliant and maximize savings.
📞 Contact us today for a hassle-free VAT setup!
