The VAT registration threshold is currently £85,000 pa, so when a business’ taxable turnover reaches the limit, it must register for VAT.
You should be monitoring your turnover on a rolling 12 month basis and then it is advisable to check your turnover for the past 12 months on a monthly basis.
What is my taxable turnover?
There are some income streams that can be excluded when deciding if your business needs to register for VAT such as :
- Income outside the scope of VAT including:
– Supplies of services to business customers in another EU country
– Supplies of services to customers outside the EU
– Supplies of goods or services that are outside the scope of UK VAT because of the place of supply rules
- Rental income
- Sale of land and buildings
- Betting or gaming income