Help! I think I’ve reached the VAT threshold

Is the VAT threshold looming?

So you know the threshold for registering for VAT is £82,000 but how do you work out if you’ve reached this magic number?
You need to add together the total value of your UK sales that would be vatable, HMRC guidance says this should include:

  • Goods you hired or loaned to customers
  • Business goods used for personal reasons
  • Goods you’ve bartered, part exchanged or gave as gifts
  • Services you’ve received from businesses in other countries that you had to reverse charge
  • Building work over £100,000 your business did for itself

You need to check these figures on a rolling 12 month basis, not on your year end or calender year.

What happens if my turnover reaches the threshold?

Within 30 days of your turnover reaching the VAT threshold you must have registered for VAT with HMRC.

What happens if I register late?

If you are late registering for VAT with HMRC you will have to pay VAT from when you should have registered. You may also get a penalty. This is why it is important to keep on top of your bookkeeping to avoid any unnecessary costs and fines.

How do I register for VAT?

You can register online in most cases. You will need to provide details of your turnover, business activity and bank details. Once you’ve completed the online registration HMRC will send you a VAT registration certificate within 14 days.

Can an accountant help?

Yes, an accountant can help you calculate whether you have reached the VAT threshold, they can register you for VAT and also advise on your VAT responsibilities once registered for VAT.

If you think you may be near to or have reached the VAT threshold contact us if you need assistance.

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