When does a business need to register for VAT?

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