How to Register for VAT in the UK

Value Added Tax (VAT) is a key part of doing business in the UK. If your company’s turnover reaches a certain level, you’re legally required to register and obtain a VAT number — but even smaller businesses can benefit from registering voluntarily.
Here’s what you need to know about when and how to register for VAT, and what it means for your business.

Understanding VAT Registration Thresholds

Who Needs to Register for VAT?

If your business’s taxable turnover exceeds £90,000 in any consecutive 12-month period, UK law requires you to register for VAT. This threshold was increased in April 2024 and applies to all UK businesses providing taxable goods or services.

You must register within 30 days of crossing the threshold to stay compliant with HMRC and avoid penalties.

Even if your turnover is below £90,000, you can choose to register voluntarily. Many smaller businesses do this to:

• Reclaim VAT on eligible business expenses, and
• Present a more established image to clients and suppliers.

Once registered, you’ll need to:

• Charge VAT on your sales,
• Submit VAT returns (usually every quarter), and
• Keep digital VAT records under Making Tax Digital (MTD) rules.

You can find official details about thresholds, registration rules, and exemptions on the GOV.UK VAT registration guidance page.

How to Register for VAT Online

Step-by-Step Guide to VAT Registration

Registering for VAT is straightforward and can be done entirely online through the HMRC VAT registration portal. Here’s how:

1. Create a Government Gateway account
   If you don’t already have one, register for a Government Gateway ID on the HMRC website — you’ll use this to manage all your tax services online.

2. Gather your business details
   You’ll need information such as:

• • Your business name and address,
  • Contact details,
  • Estimated and historic turnover figures, and
  • Your company’s bank details.

1. Choose your VAT accounting scheme
   HMRC offers several VAT schemes depending on your turnover and business type:

• • Standard VAT Accounting – report VAT on invoices when issued or received.
  • Flat Rate Scheme – pay a fixed rate of VAT on turnover (simplified for small businesses).
  • Cash Accounting Scheme – pay VAT only when customers pay you.

1. Submit your VAT registration application
   Complete the online form on HMRC’s VAT Registration Portal. Once submitted, HMRC will confirm your registration and issue your VAT number, usually within a few working days.

After You Register

Once you receive your VAT registration number, you must:

• Include it on all invoices,
• Begin charging VAT on taxable sales, and
• Keep digital VAT records for your returns.

Your first VAT Return will cover the period starting from your registration date. HMRC will confirm your return dates and deadlines once your account is set up.

Need Help?

VAT registration can seem daunting, especially when choosing the right scheme or managing digital submissions. At Merranti Accounting, we guide clients through the entire process — from registration and software setup to ongoing VAT compliance and planning. Contact us today