Last reviewed: October 2026
When registration is compulsory
You must register if your VAT taxable turnover for the previous 12 months exceeded £90,000, or you expect it to exceed £90,000 in the next 30 days alone. Check the rolling 12-month figure every month, not just at your year end.
Voluntary registration
Businesses below the threshold can register voluntarily — useful where customers are VAT-registered or you want to reclaim VAT on costs. Consider pricing and administration before deciding.
MTD for VAT
All VAT-registered businesses must follow MTD for VAT: keep digital records and submit VAT returns through compatible software. Most returns are quarterly and due one month and seven days after the period end.
Schemes worth reviewing
The Flat Rate, Cash Accounting and Annual Accounting schemes can simplify VAT for eligible small businesses. The right scheme depends on your margins and cash flow.
Official sources
This guide is general information only, not advice for your circumstances. Rates and rules change — check the official sources or speak to us before acting.