If you’re a business owner in the UK, registering for VAT (Value Added Tax) is an essential step once your taxable turnover exceeds the VAT threshold of £90,000 (as of April 2024). Here’s how you can get your VAT number and start charging VAT legally.
1. Check If You Need to Register for VAT
You must register for VAT if:
- Your taxable turnover for VAT has surpassed £90,000 over a 12-month period.
- You anticipate that your turnover will surpass the threshold within the next 30 days.
- You purchase goods worth more than £90,000 from outside the UK (post-Brexit import rules apply).
- You want to voluntarily register to reclaim VAT on expenses, even if your turnover is below the threshold.
2. Prepare the Required Information
Before registering, gather the following details:
- Your business name and address
- Business activity and type (sole trader, partnership, limited company, etc.)
- Unique Taxpayer Reference (UTR)
- National Insurance number (for sole traders/partners)
- Bank details for VAT refunds
- Estimated turnover and trading start date
3. Register for VAT Online
Most businesses register online through the HMRC website. Here’s how:
- Visit the HMRC VAT registration page.
- Sign in using your Government Gateway account (or create one if you don’t have it).
- Complete the VAT registration form with your business details.
- Submit your application and wait for confirmation.
4. Receive Your VAT Number
After submitting your application, HMRC typically processes it within 10–30 days. Your VAT registration certificate will be sent to your Government Gateway account or by post. It includes:
- Your unique VAT number
- The effective date of registration
- When to submit your first VAT return
5. Start Charging VAT & Stay Compliant
Once registered, you must:
- Charge VAT on taxable sales.
- Keep records of all VAT-related transactions.
- File VAT returns, usually every quarter.
- Pay any VAT due to HMRC.
- Comply with Making Tax Digital (MTD) rules by using compatible accounting software for VAT submissions.
Need Help with VAT Registration?
If you’re unsure about registering or need guidance on VAT compliance, consulting an accountant can help streamline the process and ensure you meet all obligations.
By following these steps, you can easily obtain your VAT number and comply with UK tax laws. If your business is growing, staying VAT-compliant is crucial to avoiding penalties and maximizing tax benefits!