VAT Registration
When do I need to register for VAT?
You can register for VAT at anytime in the capacity of an individual sole trader or Limited Company. If however your turnover reaches £90,000*, or is predicted to do so in the near future then it will become compulsory to register for VAT. You can find out more about VAT by referring to our detailed guide on VAT.
What are the advantages of being VAT registered?
- VAT registered businesses can claim back the VAT that they pay to their suppliers. They will also be required to charge VAT on their customer sales.
- Being VAT registered instills confidence in the clients and suppliers with whom business is conducted.
- Many online accounting systems now conveniently calculate and file VAT returns directly with HMRC.
- Backdate claims for VAT for up to 4 years on goods (assuming you still have them) and 6 months on services for business related purchases for which you retain a valid VAT invoice.
* VAT Thresholds quoted are accurate as of October 2024 and are subject to variability.