VAT registration is not tested only at the year end. Taxable turnover must be monitored on a rolling basis so that the business can identify the correct registration date.
Two compulsory-registration tests
- Looking backwards: register when VAT-taxable turnover for the previous 12 months exceeds £90,000.
- Looking forwards: register if the business expects taxable turnover to exceed £90,000 in the next 30 days alone.
The effective registration date and notification deadline depend on which test is triggered. Voluntary registration can also be considered where turnover is below the threshold.
Deregistration and overseas businesses
The current optional deregistration threshold is £88,000. Different rules apply to a non-established taxable person: the standard UK threshold is not generally available where taxable supplies are made in the UK.
A practical monthly control
- Maintain a rolling 12-month taxable-turnover schedule.
- Separate exempt, outside-scope and taxable supplies correctly.
- Flag unusual contracts that could trigger the 30-day forward test.
- Document the expected effective date and first VAT period.
- Review pricing and contracts for the commercial effect of VAT.
The key control is a rolling turnover schedule—not an annual reminder shortly before the accounts are prepared.
This article is general information, not UK tax, accounting or legal advice. Check the linked official guidance and obtain advice for the relevant facts.