The short answer
Start here.
For a UK-established business, the main compulsory registration tests use taxable turnover, not profit. Check whether it exceeded £90,000 over the previous 12 months at a month end, or is expected to exceed £90,000 in the next 30 days alone. Special rules and exceptions can apply. Voluntary registration may also be possible.
Your next moves
A practical checklist.
- Total taxable turnover on a rolling 12-month basis at each month end.
- Separately check whether taxable turnover in the next 30 days alone is expected to exceed £90,000.
- Separate exempt and taxable supplies and review any special circumstances.
- Consider the effect on pricing, records, invoices and cash flow.
Good to know
The details matter.
The rolling test means the VAT question can arise between accounting year ends. HMRC also has rules for businesses based outside the UK supplying goods or services here.
If a test is met, check the registration deadline immediately. For the historical test, HMRC normally requires notification within 30 days after the relevant month end; for the forward test, within 30 days of the date that expectation arose. Your effective registration date can be earlier than the date you apply.
Registration and scheme choice depend on the facts of the business. Use the official guidance and take tailored advice before acting.