Skip to Content
Skip to Main Menu

When should I register for VAT with HMRC?

When should I register for VAT with HMRC?

VAT is a complicated area and the answer to this question comes in two separate parts, namely when can you register for VAT, and when must you register for VAT. You must register for VAT once your turnover exceeds the threshold which is currently set at £85,000 for the 2017/18 tax year, however, you may decide to voluntarily register before this time.

There are two main reasons you may wish to voluntarily register your company for VAT. Firstly, being VAT registered gives the impression that you are a large company, and therefore for some business this is a tactical decision taken to appear larger than they actually are. Secondly, once your company is registered for VAT you must charge VAT on the goods and services you provide, however, this also means you are able to reclaim the VAT other businesses you are charged from other businesses. Depending on your company, the amount of VAT you are able to reclaim may be in excess of the VAT you will be liable to pay.

You should think extremely carefully before registering for VAT and take the professional advice of an accountant before going any further.

David Tattersall

Speak to a Handpicked Expert today

0800 063 9258

Hi there - I'm David from Handpicked Accountants. If you need help finding the right accountant, simply give me a call. My expertise is in connecting business owners with the very best professional services and I'm on hand to assist you today.

Subscribe to the newsletter and receive news, advice and key insights in your inbox every month

Thank you for subscribing to our newsletter. ×

By clicking submit you will receive the Handpicked Accountant newsletter. All emails include an unsubscribe link. You may opt-out at any time. See Privacy Policy.

Edit this Page