How to register for VAT

Before you start

You'll need:

• Your Government Gateway user ID and password (or create one)
• Your business details (name, address, contact info)
• Your National Insurance number (sole trader) or company number (limited company)
• Your turnover figures for the past 12 months and an estimate for the next 12
• The date you want registration to take effect

The registration process

1. Sign in to your Government Gateway and find the VAT registration service
2. Confirm your business type and your reason for registering (mandatory or voluntary)
3. Enter your turnover history and effective registration date
4. Choose your VAT scheme — standard, Flat Rate, Cash Accounting, or Annual Accounting
5. Submit and wait — HMRC typically issues a VAT number within 30 days, but it can take longer at busy times

Choosing a VAT scheme

• Standard accounting: The default. Account for VAT on invoices issued and received.
• Cash accounting: Account for VAT when paid, not when invoiced. Useful if customers are slow to pay.
• Flat Rate Scheme: Pay a fixed percentage of gross turnover, simpler bookkeeping. Limited input VAT recovery.
• Annual Accounting: One return per year, with monthly or quarterly payments on account.

Each has different turnover thresholds and trade-offs. Speak to your accountant before choosing.

After registration

• You will receive your VAT number by post (and via your Government Gateway account)
• Set up MTD-compatible bookkeeping software before your first return
• Start charging VAT on taxable sales from your effective registration date
• Reissue invoices retrospectively if there is a gap between your effective date and receiving your VAT number
• File your first return one calendar month and seven days after your first quarter end

Common pitfalls

• Not factoring in the time HMRC takes to issue the VAT number — start the process early
• Forgetting to charge VAT on invoices issued between effective date and receiving the number
• Choosing the Flat Rate Scheme without checking whether you're a "limited cost trader"