VAT Registration
Registering for VAT is a significant milestone for any growing business. Once your turnover reaches the VAT threshold, registration becomes compulsory — and voluntary registration can sometimes be beneficial even before then. Choosing the right VAT scheme and registering at the right time affects your cash flow, your pricing and your admin burden. Our London accountants guide you through every decision.
When VAT registration is required
You must register for VAT if your taxable turnover exceeds the VAT registration threshold in any rolling 12-month period, or if you expect it to exceed the threshold in the next 30 days alone. Once you cross the threshold, you must register within 30 days, and registration becomes effective from the date you crossed it.
Voluntary registration is also possible below the threshold. It can be worthwhile if your customers are VAT-registered businesses (so you can reclaim VAT on your costs) or if you want your business to appear larger and more established. We help you weigh up whether voluntary registration makes sense for you.
Choosing the right VAT scheme
There is more than one way to account for VAT. The Standard scheme lets you reclaim VAT on all your purchases but requires detailed record-keeping. The Flat Rate scheme applies a single, lower percentage to your turnover and is simpler, though it is not right for every business. The Cash Accounting scheme ties your VAT to when money actually changes hands, which can help cash flow.
We assess your turnover, your costs and your customer base, and recommend the scheme that minimises your admin and your tax. The wrong choice can cost you money for years, so it is worth getting right at the point of registration.
How we handle your registration
We assess whether registration is mandatory or beneficial, advise on the most cost-effective scheme, prepare and submit your application to HMRC, and obtain your VAT certificate. Once registered, we can also prepare and file your ongoing VAT returns under Making Tax Digital.
Frequently Asked Questions
What is the VAT registration threshold?
The threshold changes over time. We confirm the current figure and tell you exactly when registration becomes compulsory for your turnover.
Should I register for VAT voluntarily?
It depends on your customers and costs. If your clients are VAT-registered businesses, voluntary registration can let you reclaim VAT on purchases. We model the pros and cons for you.
Which VAT scheme is best for me?
It depends on your turnover, costs and customer type. We compare the Standard, Flat Rate and Cash Accounting schemes and recommend the most cost-effective option.
How long does VAT registration take?
Registration typically takes two to four weeks. We start the process as early as possible so you are registered before your effective date.