VAT RETURNS
The VAT threshold, commonly referred to as the VAT registration threshold, is the amount of money you can earn before you should register for VAT.
If you expect your VAT taxable turnover to exceed the VAT registration level within the next 30 days, or if you have earned more than the VAT threshold in any 12-month period, you must register for VAT.
Keep in mind that this 12-month period does not have to coincide with the tax year, therefore you should check whether your VAT taxable turnover has above the current VAT registration threshold on a frequent basis.
VAT Threshold
In the UK, the VAT registration threshold is currently £85,000 (2021).
You have 30 days to notify HMRC and register for VAT if your taxable turnover exceeds the current VAT threshold.
Following the completion of your VAT registration, your company will be liable for:
- VAT is charged on the goods and services that you sell to clients.
- Purchasing goods or services for your business and paying VAT on them
- HMRC VAT Returns to be submitted
- VAT records should be kept
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