How to Register for VAT in the UK (2026/27)

You must register for VAT if your VAT-taxable turnover goes above £90,000 in any rolling 12-month period, or you expect it to go above £90,000 in the next 30 days alone. You register online with HMRC, receive a VAT number and then charge VAT on your sales, reclaim VAT on purchases and file returns using Making Tax Digital software.

This guide walks you through when to register, how to apply, what information you need and what happens afterwards. For the full picture of VAT, including rates and schemes, see our complete UK VAT guide. If you would rather have us do it, we offer a VAT registration service.

VAT registration at a glance

When must you register?

There are two tests. The first is the historic test: at the end of each month, add up your taxable turnover for the previous 12 months. If it is above £90,000, you must register within 30 days. Your registration is effective from the first day of the second month after you went over. The second is the forward-looking test: if you expect your turnover in the next 30 days alone to exceed £90,000, you must register by the end of that 30-day period, and you are registered from the date you realised.

Example

A London business passes £90,000 of rolling turnover at the end of March. It must register by 30 April, and its registration takes effect from 1 May. If it fails to register on time, HMRC can charge VAT from the date it should have been registered, even though the business did not charge customers, which can mean paying out of its own pocket.

What counts towards the threshold?

Taxable turnover includes sales of goods and services at the standard, reduced and zero rates. It does not include exempt supplies, sales outside the scope of UK VAT or the sale of capital assets. If you run more than one business as the same legal person, the turnover is added together.

Should you register voluntarily?

You can register below the threshold. The main benefit is that you can reclaim VAT on business purchases, which helps if your customers are VAT-registered businesses and you have significant costs with VAT. The downside is that you must charge VAT to customers who cannot reclaim it, such as consumers, which can make your prices look 20% higher or cut your margin. Voluntary registration also adds admin: MTD-compatible software, returns and records.

How to register for VAT: step by step

1. Check you need to. Add up your turnover and apply the two tests.
2. Gather your information. Business details, bank account, turnover figures, nature of the business and your National Insurance number or Unique Taxpayer Reference.
3. Create a Government Gateway account if you do not already have one.
4. Apply online through GOV.UK. Choose the effective date of registration.
5. Receive your VAT number and certificate. This can take a few weeks.
6. Choose your VAT scheme and sign up for Making Tax Digital with compatible software.
7. Start charging VAT from your effective date and show your VAT number on invoices.

Choosing the right VAT scheme

Compare the options before registering. Our Flat Rate Scheme calculator shows whether the scheme saves you money.

Reclaiming VAT on costs from before registration

You can usually reclaim VAT on goods you bought for the business up to four years before registering, if you still have them or have used them to make taxable sales, and on services up to six months before registering. Keep the invoices, because HMRC may ask for proof.

Your first VAT return

HMRC will tell you your VAT accounting period, which is usually quarterly. After the period ends you have one month and seven days to file the return and pay any VAT due. You must file through MTD-compatible software, which keeps digital records of sales and purchases. The return shows VAT charged on sales, VAT reclaimed on purchases and the difference you pay or reclaim.

Registering for VAT in London

London businesses can cross the threshold quickly because of higher prices and volumes. Restaurants and cafes in Westminster, online retailers in Hackney and contractors in Croydon are common examples. If you are close to £90,000, set a monthly check on your rolling turnover so you do not miss the deadline. We register businesses across the capital. See limited company accountants in Westminster or bookkeeping in Hackney.

Common VAT registration mistakes

• Registering late and being charged VAT you did not collect.
• Not checking the rolling 12-month turnover every month.
• Joining the Flat Rate Scheme without comparing it with standard accounting.
• Forgetting to show the VAT number on invoices.
• Not using MTD-compatible software from the first return.

VAT invoices and record keeping

Once registered, every invoice to a VAT-registered customer must be a valid VAT invoice showing your VAT number, the date, a description of the goods or services, the amount excluding VAT, the VAT rate and the VAT amount. Keep digital copies of sales and purchase invoices, together with your VAT account, for at least six years. MTD rules require digital record keeping, so use bookkeeping software or a spreadsheet linked to MTD-compatible software. Our bookkeeping services can keep these records for you.

After you register: staying compliant

HMRC checks VAT returns and can visit businesses to inspect records. Keep your records orderly, file returns on time and pay by the due date. If your turnover later falls below £88,000 and is expected to stay there, you can ask to deregister. If you plan to sell the business or change its structure, check the VAT consequences before you do. You may need to notify HMRC of changes to your business, address or bank details.

Questions to ask before you register

• Are most of my customers VAT-registered businesses that can reclaim the VAT I charge?
• How much VAT do I pay on my own costs?
• Will the Flat Rate Scheme or standard accounting leave me better off?
• Do I need to adjust my prices to protect my margin?
• Who will keep my VAT records and file the returns?

Thinking these through before you register makes the first few VAT periods much smoother.

Frequently asked questions

What is the VAT registration threshold for 2026/27?

£90,000 of VAT-taxable turnover in any rolling 12-month period.

How long do I have to register after exceeding the threshold?

30 days from the end of the month in which you went over.

Can I register for VAT if I earn under £90,000?

Yes, voluntary registration is allowed and lets you reclaim VAT on costs.

How long does it take to get a VAT number?

Usually a few weeks after you apply, although it can take longer if HMRC needs more information.

Can an accountant register me for VAT?

Yes. We can register you, choose the right scheme and submit your returns.