When to register for VAT (and how)
When to register for VAT
You must register if:
• your total VAT taxable turnover for the last 12 months was over £85,000 (the VAT threshold)
• you expect your turnover to go over £85,000 in the next 30 days
• You must register if, by the end of any month, your total VAT taxable turnover for the last 12 months was over £85,000.
You have to register within 30 days of the end of the month when you went over the threshold. Your effective date of registration is the first day of the second month after you go over the threshold.
Example: Between 12 May 2021 and 11 May 2022 your VAT taxable turnover is £87,000. That’s the first time it has gone over the VAT threshold. You must register by 30 June 2022. Your effective date of registration is 1 July 2022.
You must also register if you realise that your annual total VAT taxable turnover is going to go over the £85,000 threshold in the next 30 days. You must register by the end of that 30-day period. Your effective date of registration is the date you realised, not the date your turnover went over the threshold.
Example: On 1 May, you arrange a £100,000 contract to provide services. You’ll be paid at the end of May. You must register by 30 May.
Your effective date of registration will be 1 June.
How to register for VAT
You can usually register for VAT online. If you already have a Business Government Gateway you should sign into that account. Otherwise you will need to create one following the same link and selecting ‘Create sign in details’ below the ‘Sign in’ button.
By doing this you’ll register for VAT and create a VAT online account (sometimes known as a ‘Government Gateway account’). You need this to submit your VAT Returns to HM Revenue and Customs (HMRC).
Or you can appoint Matthews Hanton to submit your VAT Returns and deal with HMRC on your behalf. If you’re using Matthews Hanton, you can still sign up for a VAT online account when you receive your VAT number (select option ‘VAT submit returns’).
After you’ve registered, you’ll get:
• a 9-digit VAT number which you must include on all invoices you raise
• information about when to submit your first VAT return and payment
• confirmation of your registration date (known as your ‘effective date of registration’)
You’ll get this in your online VAT account or via Matthews Hanton if we registered for you.