Finance & Banking
VAT Registration Guide
When to register for VAT, how to apply, and managing your VAT obligations.
By Free Business Registration Ltd · 1 min read
For UK-established businesses, VAT registration is normally required when taxable turnover exceeds £90,000 over a rolling 12 months, or is expected to exceed £90,000 in the next 30 days. Different rules can apply to overseas businesses and particular transactions.
In this guide
When to Register
- Monitor taxable turnover over a rolling 12 months against the £90,000 threshold
- Also check whether taxable turnover will exceed £90,000 in the next 30 days alone
- Voluntary registration available below threshold
- Cross-border supplies can have separate registration rules; check the relevant HMRC guidance
- A business not established in the UK may need to register without the standard threshold
- After exceeding the rolling threshold, register within 30 days of the end of that month; the forward-looking test has different timing
VAT Schemes Available
- Apply the correct VAT rate to each taxable supply; some supplies are exempt or outside scope
- Flat Rate Scheme - pay fixed percentage of turnover
- Cash Accounting Scheme - account when paid
- Annual Accounting Scheme - one return per year
- Margin Schemes for specific sectors
- Different rates: Standard (20%), Reduced (5%), Zero (0%)
Official guidance
This is general guidance. Check the current official rules and get advice for your circumstances before making tax, legal or financial decisions.