Posted September 16, 2021

Do I Need To Register for VAT?

VAT Registration: a small business guide, everything you need to know about registering for VAT.

All About VATtools workman

Value Added Tax, or VAT as it is more commonly known, is a sales tax charged on the same of most goods and services in the UK.

When you make a business sale, you don’t charge your customers VAT unless you are registered with HMRC and likewise you cannot reclaim VAT unless you are registered.

You only have to register for VAT if your annual taxable sales exceed £85,000, sales that are exempt from VAT or outside the scope of VAT are not taxable sales.

Do I Need To Register for VAT?

Compulsory Registration

If your annual taxable sales are above the VAT registration threshold of £85,000, or they are likely to exceed this threshold in the next 30 days then you must register for VAT. The annual taxable sales are assessed by looking at the previous 12 months (not as a yearly assessment at your year end).

Voluntary Registration

In certain situations, you may wish to register for VAT before your turnover hits the VAT registration threshold.

Two such scenarios are, if you supply zero rated goods as you will be able to reclaim your standard rated inputs but your costs won’t be more expensive to your customers. An example of this is a milk delivery business or a children’s clothes shop.

The other scenario is where you sell your goods or services to other VAT Registered businesses as they will be able to reclaim the VAT you charge as input tax on their VAT return.

checkHow To Register for VAT?

The process of VAT registration is fairly simple, you can register for VAT online through your government gateway.

To register for VAT, please follow this link VAT registration: How to register – GOV.UK (

You will need the following information to be able to register for VAT:

  • contact details
  • bank account
  • UTR (link to FAQ what is a UTR)
  • Details of turnover
  • Nature of your business

You will need to choose your SIC code as part of your registration, you will need to make sure that this ties up to what is shown at Companies House when you registered the business.

Should I Join a VAT Scheme?

There are several different VAT schemes that you can join when you register for VAT. The main ones you should consider are:

  • Flat Rate VAT Scheme
  • Annual Accounting Scheme
  • VAT Cash Accounting Scheme


If you would like to discuss your situation call the office on 0113 258 2437, book a meeting or visit our contact page for more ways to get in touch.