What to do at this stage
- Register on time. Within 30 days of crossing the threshold, or immediately if you expect to cross it within 30 days.
- Choose your scheme. Standard, Flat Rate or cash accounting, depending on your costs and customers.
- Go digital. Set up compatible software to keep records and file, as required by Making Tax Digital.
- Update your pricing and invoices. Start charging VAT from your effective date and issue proper VAT invoices.
- Reclaim pre registration VAT. On stock and assets from the 4 years before, and services from the 6 months before, if still used.
Hitting the VAT threshold?
The scheme choice and timing make a real difference. TaxTune registers you at the right moment on the best scheme, sets up your software, and handles your first return.
Let us handle your VAT from day one
We register you, choose the scheme that costs you least, set up digital records, and file every return. Fixed monthly fee.
Frequently asked questions
When do I register for VAT for the first time?
Once your taxable turnover passes £90,000 in a rolling 12 month period, or if you expect to pass it within the next 30 days. Registration is then compulsory.
What scheme should I choose?
It depends on your costs and customers. The standard scheme suits most, while the Flat Rate or cash accounting schemes suit particular situations. It is worth checking the maths first.
Do I need software to register for VAT?
You need Making Tax Digital compatible software to keep records and file returns, as most VAT returns can no longer be typed straight into the HMRC website.
Can I reclaim VAT from before I registered?
Often yes, on goods bought in the 4 years before registration that you still have, and services in the 6 months before, if used in the business.
What happens if I register late?
You are liable for VAT from the date you should have registered, even if you did not charge it, plus possible penalties. Monitoring your rolling turnover avoids this.