U.K. VAT registration

Businesses must register for value added tax (VAT) if their total taxable turnover for the last 12 months exceeds £90,000, or is expected to exceed this VAT threshold within the next 30 days.

For businesses based outside the U.K., the VAT registration threshold is nil. They must register for VAT regardless of annual taxable turnover — unless most of the business’s taxable goods or services are zero-rated. In this case, the business may not have to register for VAT and would need to ask His Majesty’s Revenue and Customs (HMRC) for an exemption from registration.

Businesses can register voluntarily if their taxable sales do not exceed the VAT threshold.

The information you’ll need to register for VAT depends on the type of business you’re registering.

More details are below:

Limited company:

• Company registration number

• Business bank account details

• Unique Taxpayer Reference (UTR)

• Details of your annual turnover

• Details of your Self Assessment, Corporation Tax, and Pay As You Earn (PAYE)

  
  

Individual or partnership:

• National Insurance number

• Proof of identity (such as a passport or driving licence)

• Personal bank account details

• Unique Taxpayer Reference (UTR) (if applicable)

• Details of your annual turnover

• Details of Self Assessment return

• Payslips

• P60

  
  

You can register for VAT online at the HMRC website. Once the VAT registration process is complete, within four to six weeks you will be issued with a VAT registration certificate, a 9-digit VAT registration number, and confirmation of your VAT registration date.

VAT-registered businesses must file a VAT return every three months, and typically need to follow Making Tax Digital rules and requirements.

Late registration

Businesses registering late must pay VAT on any sales made since the date the business should have registered.

Businesses may be liable to a financial penalty for late VAT registration.

The severity of the penalty will depend on the amount of VAT owed and how late the business is in registering.

Foreign businesses not established in the U.K. should submit their VAT registration application to:

HMRC Non Established Taxable Persons Unit (NETPU)
HM Revenue & Customs, Ruby House, 8 Ruby Place, Aberdeen, Scotland, AB10 1ZP

If a non-established business is using an agent to register on their behalf, then they may register online.

Cancelling a registration

VAT-registered businesses must cancel their VAT registration if they stop trading or stop making taxable supplies in the U.K.

A VAT registration will not be cancelled automatically. It is the business’s responsibility.

All European Union (EU) member states have a fixed format for their VAT numbers. Although the U.K. is no longer a member of the EU, the U.K. VAT number format remains the same. This consists of the prefix ‘GB’ followed by nine digits. For example: GB 123456789

Checking a VAT number

Businesses can use an online service from HMRC to check if their VAT registration number is valid.

Once a business has received its VAT number, it’s free to commence trading and charge VAT.

The business must comply with U.K. VAT compliance rules and file regular VAT returns.