The UK’s VAT registration threshold (above which persons making taxable supplies are required to register and account for VAT) is currently set at £85,000, although businesses can opt to register voluntarily if their taxable turnover is below this.
What if you go over the VAT threshold?
In the UK you have 30 days after exceeding the supply threshold to inform HMRC, the UK tax office, and register for VAT. In that scenario, you will have to pay the overdue VAT and may receive a penalty.
What is the VAT threshold for the next 30 days?
your VAT taxable turnover exceeds the current threshold of £85,000 (for the 2021/22 tax year). The VAT taxable turnover refers to the total value of everything that you sell that isn’t exempt from VAT. you expect your VAT taxable turnover to exceed £85,000 in the next 30-day period
What to do if turnover goes over VAT threshold?
You can apply for a registration ‘exception’ if your taxable turnover goes over the threshold temporarily. Write to HMRC with evidence showing why you believe your VAT taxable turnover won’t go over the de-registration threshold of £83,000 in the next 12 months. HMRC will consider your exception and write confirming if you get one.
When does a business have to register for VAT?
A business must register for VAT once its turnover reaches or goes higher than the registration threshold. The VAT threshold sometimes changes at the start of a new tax year; the current threshold is £85,000*. This means that if your turnover from the previous 12 months reaches that amount, then it’s time to register for VAT.
When does VAT go up in the UK?
It usually goes up on 1 April each year. There are different thresholds for buying and selling from EU countries. To check if you’ve gone over the threshold in any 12-month period, add together the total value of your UK sales that are not VAT exempt, including:
