The short answer
Start here.
VAT registration is based on taxable turnover, not profit. HMRC’s current compulsory registration threshold is £90,000, with tests for the past 12 months and expected turnover in the next 30 days. Voluntary registration may also be possible.
Your next moves
A practical checklist.
- Total taxable turnover on a rolling 12-month basis.
- Check whether you expect taxable turnover to cross the threshold in the next 30 days.
- 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.
Registration and scheme choice depend on the facts of the business. Use the official guidance and take tailored advice before acting.