
VAT Registration Threshold Guidance
If your sales are growing, it can be hard to tell when VAT registration becomes mandatory. This service gives you clear guidance on the VAT registration threshold, how the rolling 12-month test works, and what practical steps to take so you stay compliant and can plan ahead.
More information
What this service covers
You get straightforward, situation-specific guidance so you can make a confident decision and act on time. Support typically includes:
- Checking whether you are close to, at, or over the VAT registration threshold using the rolling 12-month method
- Explaining the difference between past 12 months turnover and expected turnover in the next 30 days
- Identifying which income counts as taxable turnover and what can be excluded
- Discussing the risks of late registration and how to reduce penalties and disruption
- Planning the timing of registration where you have choices, and understanding cashflow impact
- Clarifying which VAT scheme might fit your setup (where relevant) and what records you will need
When this is most useful
This guidance is ideal if you are:
- Growing quickly and worried you might cross the threshold without noticing
- Invoicing irregularly, working on large projects, or experiencing seasonal spikes
- Running an owner-managed limited company or a sole trader business and unsure what counts towards turnover
- Considering voluntary VAT registration and want to understand the pros and cons
- Buying in significant costs and want to know whether VAT registration could help you recover VAT
How the guidance is delivered
We start by understanding how you trade, what you sell, and how you invoice. We then review your turnover pattern against the VAT threshold rules, explain the outcome in plain English, and confirm the key dates and actions.
If registration is needed, you will leave with a clear plan: what to prepare, what to tell customers, and what changes to expect in your pricing and bookkeeping.
What happens after
If you decide to register, the next step is to put simple processes in place to keep VAT under control. This can include setting up your accounting software correctly, choosing a VAT scheme (if suitable), and establishing a routine for VAT return deadlines so you stay compliant going forward.
Frequently Asked Questions
How do I know if I have exceeded the VAT threshold?
What income counts towards the VAT registration threshold?
Can I register for VAT voluntarily before hitting the threshold?
What happens if I register late?
Will VAT registration mean I have to raise my prices?
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