How to register for VAT
The step-by-step process for registering with HMRC, what you need before you start, and what happens after registration.
In one sentence
You must register for VAT with HMRC if your taxable turnover goes over £90,000 in any 12 months or you expect it to in the next 30 days, and you can register online as a sole trader or a limited company through your Government Gateway account.
Quick answer
- Register if taxable turnover over the last 12 months is over £90,000, or you expect to pass £90,000 in the next 30 days
- You can register voluntarily below £90,000
- Sole traders register with a National Insurance number and ID; limited companies use the company registration number and company UTR
- HMRC sends your 9-digit VAT number and effective date of registration by post
Steps
- 1Confirm you're at or near the £90,000 threshold (or want to register voluntarily)
- 2Sign in to your Government Gateway account (or create one)
- 3Apply via the VAT registration service on gov.uk
- 4Wait for HMRC to write with your VAT number (timing varies; check HMRC's reply times)
- 5Set up MTD-compatible bookkeeping software before your first return
- 6Issue VAT invoices and start charging VAT from the effective date
Register for VAT in six steps
You register for VAT online with HMRC, through your Government Gateway account. It is free, and you can save the application and finish it later. The steps are:
- Check that you have to register, or decide to register voluntarily (see the next section).
- Gather your details: business name and address, bank account, turnover for the last 12 months, and an estimate for the next 12.
- Sign in to the GOV.UK VAT registration service. If you have no Government Gateway sign-in, you can create one the first time.
- Enter your business type, turnover and the date you want registration to start. Fill in any extra forms the service asks for.
- Submit, and wait for HMRC to write to you with your 9-digit VAT number and your effective date of registration.
- Sign up for your VAT online account, set up Making Tax Digital software, and start charging VAT from your effective date.
Registering as a limited company, sole trader or partnership uses the same service. Only the details HMRC asks for differ.
Who has to register for VAT, and when
You must register for VAT if your total taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days. Taxable turnover is everything you sell that is not VAT exempt or outside the scope of VAT, so it includes zero-rated and reduced-rated sales.
| Your situation | Register by | Effective date of registration |
|---|---|---|
| 12-month turnover has gone over £90,000 | 30 days after the end of the month you went over | First day of the second month after you went over |
| You expect to go over £90,000 in the next 30 days | End of that 30-day period | The day you realised, not the day turnover passed £90,000 |
| Under £90,000 and you choose to register | Whenever you like | The date HMRC registers you, or an earlier date you ask for |
| You only sell VAT-exempt or outside-scope goods or services | You do not have to register | Not applicable |
Worked example: on 15 July your 12-month taxable turnover is £100,000, the first time it has passed £90,000. You must register by 30 August, and your effective date of registration is 1 September. A second case: on 1 May you agree a £100,000 contract that will be paid by the end of May. You must apply by 30 May, and your effective date is 1 May. Both examples come from GOV.UK.
Read more on the VAT registration threshold and on voluntary VAT registration. If you register late you must pay VAT on sales from the date you should have registered, and you may face a penalty. If you take over a VAT-registered business, the combined turnover of both businesses counts towards the threshold.
Before you start: what you need to register for a VAT number
- Your Government Gateway user ID and password (or create one when you sign in)
- Business details: name, address and contact information
- Your turnover for the past 12 months and an estimate of taxable turnover for the next 12
- The date you want registration to take effect
Sole trader or partnership
- National Insurance number
- An identity document such as a passport or driving licence
- Bank account details
- Unique Taxpayer Reference (UTR) if you have one
- Information about your Self Assessment return, payslips or P60
Limited company
- Company registration number
- Business bank account details
- Company UTR
- Information about your Self Assessment, Corporation Tax and PAYE
A few cases must register by post on form VAT1: for example, if you want a registration exception because turnover went over the threshold only temporarily, you are joining the Agricultural Flat Rate Scheme, or you are a local authority. GOV.UK lists them all.
How long does it take to get a VAT number?
It varies. HMRC publishes its current reply times on GOV.UK under "Check when you can expect a reply from HMRC", and the time rises if HMRC needs more information. Apply early, ideally before you reach the threshold, so you are not charging VAT you cannot yet show on an invoice. When HMRC registers you, the VAT number, your effective date and your first return date arrive by post.
Choosing a VAT scheme
The schemes change how you calculate and report VAT. Settle which one you want before your first return.
| Scheme | How it works | Who can join |
|---|---|---|
| Standard accounting | Account for VAT on invoices issued and received. This is the default. | Everyone |
| Cash accounting | Account for VAT when you are paid or you pay, not when you invoice. | VAT taxable turnover of £1.35 million or less |
| Flat Rate Scheme | Pay a fixed percentage of turnover. Simpler records, but you generally cannot reclaim VAT on purchases. A limited cost business pays 16.5%. | VAT turnover of £150,000 or less (excluding VAT); you apply to HMRC |
| Annual Accounting | One return a year, with payments on account during the year. | Estimated VAT taxable turnover of £1.35 million or less |
See our guide to the VAT Flat Rate Scheme before you choose it.
After you are VAT registered
- You get a 9-digit VAT registration number. It must go on every invoice you raise.
- Sign up for your VAT online account as soon as the number arrives. HMRC will also sign you up to Making Tax Digital for VAT unless you are exempt.
- Use MTD-compatible software to keep records and file returns.
- Charge VAT on taxable sales from your effective date, at 20% standard rate, 5% reduced rate or 0% zero rate depending on what you sell.
- File your first return by the date HMRC gives you. Returns are usually quarterly and due one calendar month and seven days after the end of the period. See VAT return deadlines.
Invoices between your effective date and getting your number
You cannot show VAT on an invoice until you have your VAT number, but you owe HMRC the VAT from your effective date. GOV.UK says you can raise your price to cover it. For a £100,000 contract, you tell the customer you will add 20% and invoice £120,000. Once the number arrives, reissue the invoice showing the £20,000 VAT. The customer pays nothing extra and can reclaim the VAT if they are VAT registered.
Common mistakes when registering for VAT
- Leaving it late. The 30-day deadline runs from the end of the month you went over, and HMRC can take weeks to reply.
- Counting only standard-rated sales. Zero-rated and reduced-rated sales count towards the threshold.
- Looking only at the tax year or financial year. The test is any rolling 12 months.
- Forgetting to charge VAT, or to reissue invoices, for the gap between your effective date and getting your number.
- Choosing the Flat Rate Scheme without checking whether you are a limited cost trader.
- Ignoring the downside of voluntary registration if your customers are consumers who cannot reclaim VAT.
Can I cancel my VAT registration later?
Yes. You must cancel within 30 days if you stop making VAT taxable supplies or stop trading. If your taxable turnover falls below £88,000 you can ask HMRC to cancel. You can cancel online in most cases.
Need help with VAT registration?
Our VAT service covers registration, scheme choice and returns. You can also use the VAT calculator to check the VAT on a sale.
Official source
Frequently asked questions
How do I register for VAT?
You can usually register for VAT online through GOV.UK. Sign in with your Government Gateway details (you can create them the first time you sign in), start the VAT registration service and complete the forms for your type of business. You do not have to finish in one go, because you can save your entry and come back to it. Once HMRC has registered you, it sends your 9-digit VAT registration number, your effective date of registration and details of when your first VAT return is due, by post.
Can a sole trader register for VAT?
Yes. A sole trader registers as an individual through the same online service as a company, and the threshold is the same: £90,000 of taxable turnover. A sole trader registers with their National Insurance number and an identity document such as a passport or driving licence, where a limited company uses its company registration number and company UTR.
When do I have to register for VAT?
You must register if your total taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days. If you have gone over in the last 12 months, you must register within 30 days of the end of the month in which you went over, and your effective date of registration is the first day of the second month after. For example, if your 12-month turnover first passes £90,000 on 15 July, you must register by 30 August and your effective date is 1 September. If you expect to go over in the next 30 days, you must register by the end of that 30-day period and your effective date is the day you realised.
Can I register for VAT voluntarily?
Yes. You can choose to register even if your turnover is under £90,000. You must pay HMRC any VAT you owe from the date they register you, so work out the effect on your prices and your customers before you apply.
What happens if I register for VAT late?
You must pay VAT on any sales you have made since the date you should have registered. You might also have to pay a penalty, depending on how much you owe and how late your registration is.
Can I charge VAT before I get my VAT number?
You cannot show VAT on your invoices until you have your VAT registration number, but you owe HMRC VAT on your sales from your effective date of registration. HMRC's guidance says you can raise your price to cover the VAT, then reissue the invoice showing the VAT once your number arrives.
Can I register for VAT by post?
Most businesses register online. HMRC says you must register by post using form VAT1 if you are applying for a registration exception because your turnover has gone over the threshold only temporarily, you are joining the Agricultural Flat Rate Scheme, you are a local authority, parish or district council, or you are an insolvency practitioner registering a business. GOV.UK lists the other special cases.
How much does it cost to register for VAT?
Registering with HMRC is free. You pay HMRC the VAT you owe from your effective date of registration, and you may need Making Tax Digital compatible software to keep records and file returns.
Can I cancel my VAT registration?
Yes. You must cancel within 30 days if you stop making VAT taxable supplies or stop trading, or you might be charged a penalty. If your taxable turnover falls below £88,000 you can ask HMRC to cancel your registration. Most cancellations can be made online.
Can an accountant register me for VAT?
You can appoint an accountant or agent to submit your VAT returns and deal with HMRC on your behalf. You can still sign up for your own VAT online account when you receive your VAT registration number.
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